Tuesday, 24 January 2017

The TPP is dead

The TPP is dead. Trump killed it by executive order. As a typical left winger he thinks free trade is bad for the economy. He simply is very ignorant on the topic

The Australian government takes a totally opposite view on trade although to be honest they appear to be as mercantilist in how they view trade deals as Trump. That is perhaps a bit harsh as I can't see any country wanting to negotiate a trade treaty with the USA as  Trump would only sign up if the USA is a big 'winner in terms of net exports.

If one reduces trade barriers then not only will exports increase but so will imports. In terms of jobs the net gain will be negligible but national income will increase sometimes substantially.

The TPP did not have a lot of benefits to it. The Productivity Commission found few and was quite wary of it.

Greg Jericho echoes my thoughts on the TPP.

I am a great believer in multilateral trade agreements. They bring benefits of lowering trade barriers. bilateral trade agreements merely encourage trade diversion not trade creation.
It is not good the trade negotiators on the TPP were so secretive and not transparent.

On the politics Turnbull did not come across very well. Shorten had his measure all the way. Ciobo I have mentioned before. He was caught out badly lying on Q&A about Mallah.  He wants Parliament to ratify an agreement that might have more nations to be part of it! He clearly does not understand how parliament works!

THIS is pertinent