TPP revisited
Biden is right to follow Trump’s lead on trade but now needs to bring in stakeholders. While I am not a fan of Trump, I think he knows a lot about how to sell or market a policy. Trump railed against multilateral trade agreements like NAFTA and TPP. I am still sour about TPP.
While Trump was vague on the details, he hammered a message against the deals. His messaging was free trade hollowed out US manufacturing capacity, offshored US jobs, and was bad for workers. This simple messaging worked, so much so he built a new consensus around trade deals, one Democrats should exploit. Too long politicians have tried to make the case consumers are the winner of free trade by way of prices. That is true but, you can not explain that to the worker displaced by companies chasing profit abroad. Trump understood that and promised to bring back the jobs (a dubious promise) but an effective one. I go back to this Biden on the campaign trail promised to make policy for the American worker. Democrats should and emphasize fair and free trade.
Trump often talked about trade deficits and other benign issues that honestly did not matter. While he did that, Democrats loaded the update to NAFTA USMCA with key provisions geared towards workers. It changed manufacturing requirements to make a larger percentage of certain goods within the trade zone, implemented a minimum wage for certain manufacturing workers, and generally lowered regulations limiting competition between nations. These all helped support manufacturing.
While Democrats worked on those provisions they wanted in the deal Trump sold the package. Trump met with Mexico’s President Enrique Pena Nieto, Canadian Prime Minister Justin Trudeau, Manufacturing CEOs, Labor Unions, and had a squadron of trade and policy advisors flooding the zone defending his trade deals. This all made Trump look strong and built support for his policy.
Biden needs to do the same for TPP. While more leaders are involved in TPP, Biden should focus on the same policies and style to sell it. The current members of the existing trade agreement CPTPP. (Comprehensive and Progressive Agreement for Trans-Pacific Partnership a clunky name) are eager to have us join. That is not just because it would then compose 40% of the world’s GDP (making it the largest free trade deal), but work as a nonmilitary bulwark against China.
But that is not enough. Biden needs to articulate from the start this is a net benefit for America. Not only will consumers see lower prices, but workers will not be left behind. The current framework of CPTPP deals with the elimination or reduction of tariffs, loosening restrictions on trade services, e-commerce intellectual and investment protections, and finally, environmental and labor standards.
Joining TPP will spur demand for American manufacturing but, labor and environmental standards need to be emphasized. Keeping support means explaining how changes help Americans. Leveling the playing field for all workers includes closing the costs for labor and environmental standards. Explaining the policy to manufacturers and workers is key. It shows Biden is focused on Building Back Better his campaign slogan. TPP is a policy for all Americans Biden should sell it as such.