(Newswire.net — December 5, 2016) — As The US Senate passed a controversial “fast-track” trade bill in a 62-37 vote on Friday, China has raised concerns about European Union plans to negotiate the deal, Reuters reported.
The TPP treaty aims to counter China’s rising economic and diplomatic power and it is understandable why the US President is in such a hurry to impose it to EU. However, the true nature, or the lack thereof – since the treaty is not fully disclosed, is what worries skeptics.
US are planning to launch the “fast-track” by the end of June, and the bill is now in the House of Representatives awaiting votes early next month. The vote, however, is expected to be tough as there is strong opposition and worry that the bill could have negative impact on the working class within United States.
“TPP is good for American businesses and American workers…we will make the case on the merits as to why it will open up markets for American goods, American exports, and create American jobs,” President Obama said in a statement on April 28.
Some EU parliament members, however, believe that the deal is good for US but bad for EU market because it overrides product classes, which are the EU barrier against the import of poor quality products.
The other issue is that US is China’s biggest trading partner and the deal would undermine strong economic bonds between them.
Chinese officials queried EU’s foreign policy chief Catherine Ashton about the issue when she visited Beijing at the end of April for talks with Foreign Minister Wang Yi and other Chinese leaders. The EU representative responded that TPP is a two-way deal which would benefit both US and EU, but also open the US market for others. However, that would only be the case for countries that sign the treaty, and China is not invited.
According to Chinese, the goal is the opposite of free trade. It would mean locking the trade between TPP countries away from other markets, making NATO members economically independent from countries outside TPP, but dependent on the US.
According to a European Commission report, a transatlantic trade deal could indeed add 0.5 and 0.4 percent respectively to European and US gross domestic product, however, it could take a decade to deliver those effects.
It is not yet known what exactly is in the treaty documents, or why it is shrouded under a wale of mystery, but it is well known that the deal would exclude China.