Small business are the backbone of the U.S. economy and are key contributors to economic growth in other TPP economies as well. The United States’ 28 million Small and medium enterprises account for nearly two-thirds of net new private sector jobs in recent decades.So why is Congress considering legislation that could end up driving those companies out of business?
American small business owners have the reason to be very concerned about whether to pass the TPP or not. This deal would support multinational corporations and give them power to undermine the small businesses’ policies and priorities on the national and local levels at the expense of their local business. One major concern is the Investor State Dispute Settlement which represents a major threat to small business economy. It would allow foreign companies to sue the U.S. government for actions taken on a local level.
For example, any “Buy American” provisions could be thrown out if a foreign company wants to have access to government contracts. This isn’t just a threat to American sovereignty but also the local businesses as well. TPP people say that it allow them to have better access to foreign markets but any new markets will have to deal with the impact of their new domestic competitors.
This issue can be seen from the leaked drafts of TPP and other major trade agreements like NAFTA which has not kept its promises.There is a lot of evidence that trade agreements have hurt and devastated employment in the United States. Past trade deals like those have caused local industries and jobs to be off-shored and have failed to produce incentives for innovation or investment in local industries.
The information we have, along with the broken promises of past trade deals, make it clear that the TPP is designed by large corporations for their benefit and will do nothing to create jobs or support small business. Congress must look closer and think twice before they fast track this dangerous, short-sighted agreement.