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THE TTALK QUOTES
On Global Trade & Investment
Published Three Times a Week By
The Global Business Dialogue, Inc.
Washington, DC Tel: 202-463-5074
Email: Comments@gbdinc.org
No. 50 of 2014
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WEDNESDAY, JULY 9, 2014
Filed from Portland, Oregon
Click here for Monday's quote from William T. Wilson on India.
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TPP AND BUY AMERICAN
"Red, white and sounds unbelievable. But, indeed, as Americans celebrate July 4th this year, U.S. trade negotiators are locked behind closed doors at a Trans-Pacific Partnership negotiating round in Ottawa gutting Buy American policies."
Lori Wallach July 3, 2014
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CONTEXT
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Ms. Wallach is the Director of Public Citizen's Global Trade Watch, and today's featured quote is from her article for The World Post "TPP Would Gut Buy American: Happy July 4th!" In the body of the piece, Ms. Wallach highlights the portion of Federal taxes paid by citizens of selected states that goes to procurement projects. Her first example is Massachusetts. She writes: "Massachusetts residents pay $3,184 each in taxes every year that go to support federal procurement, amassing a state total of $17.6 billion."
That's only one state, of course. The larger argument is that the TPP, specifically the TPP Ms. Wallach fears is being negotiated, will result in much of that money paying for foreign rather than U.S. production. One part of the TPP scenario Ms. Wallach wants to avoid is this, again her words: "The TPP procurement chapter would require that all firms operating in any TPP country be provided the same access as American firms to U.S. government procurement contracts over a set de minimis value. For example, the many Chinese-government-owned firms in Vietnam would be empowered to undercut American businesses to get contracts for goods bought by the U.S. government, paid for by American taxpayers. (Manufacturing wages in Vietnam average 52 cents per hour.)"
As for the opportunities a TPP procurement chapter might open up for U.S. firms, Ms. Wallach argues that the deal could hardly be worth it because of the disparity in the size of the relevant procurement markets. "The U.S. federal procurement market," she writes, "is more than ten times larger than ALL of the new prospective TPP procurement markets combined."
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COMMENT
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Of course we have questions about some of the assertions in Ms. Wallach's article. We will hold those until next week, however, and the TPP debate between Lori Wallach and Derek Scissors of the American Enterprise Institute. Here we will simply make the confession that, alas, our own knowledge of the TPP negotiations on procurement is limited to what we read in USTR's summary of the issues. Here is what the negotiators have told us about their procurement objectives: GOVERNMENT PROCUREMENT
Increasing access to government procurement markets in TPP countries, which represent an estimated 5-10 percent of a country's economy, will unlock significant opportunities for U.S. and other TPP businesses and workers.
Specifically, in the TPP we are seeking:
* Creation of fair, transparent, predictable, and non-discriminatory rules to govern government procurement in TPP countries; and
* Commitments to liberalize TPP countries' government procurement markets, with comparable levels of coverage by all TPP countries, taking into account the particular sensitivities of specific countries.
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RELATED EVENT
| On July 16, A TPP Debate, 9 a.m. to 10:30 a.m. at the National Press Club. Lori Wallach of Global Trade Watch and Derek Scissors of the American Enterprise Institute will debate the question, TPP: Too Risky To Pass or Too Risky To Pass Up? Click here or on the link above for registration and other details. You don't want to miss this debate.
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SOURCES & LINKS
| A Fourth of July Concern takes you to the Lori Wallach article on TPP and procurement that was the source for today's quote.
TPP Objectives is a link to the USTR's list of objectives for the TPP negotiations.
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© 2014 The Global Business Dialogue, Inc.
1140 Connecticut Ave., NW, Suite 950
Washington, DC 20036
Tel: (202) 463-5074
R. K. Morris, Editor
www.gbdinc.org
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