TPP Terms are Even Worse for U.S. Than NAFTA?
Previously under NAFTA, 62.5 percent of the value of cars and 60 percent of auto parts must be made in NAFTA countries, or a tariff will apply. But for TPP the U.S. Trade Representative Michael Froman appears to have made a deal saying only 45 percent for cars and 30 percent for parts need to be made in TPP countries – the rest of that business goes to China and other non-TPP, low-wage, low-labor-standards and low-environmental-protection countries. The result will be a huge shift of jobs and business away from American, Mexican and Canadian auto and parts makers.
Again, under NAFTA, 62.5 percent for cars, and 60 percent for parts. Under TPP, this is lowered to 45 and 30. Does that sound like an improvement or a huge giveaway?