Australia PM says Indonesia welcome in TPP as frictions ease

An article published Thursday November 12th, 2015 in Reuters, http://www.reuters.com/article/2015/11/12/us-indonesia-australia-idUSKCN0T110N20151112#pa74ddjuCpYDSgwG.97, states that according to Australian Prime Minister Malcom Turnbell, Australia would welcome Indonesia into the Trans Pacific Partnership trade deal. As of late the two countries have been trying to set aside their past friction and focus on building closer economic ties. Turnbell met Indonesian President Joko Widodo in Indonesia’s capital of Jakarta as part of an effort to restore economic and diplomatic relations between the two countries. Turnbell said Australia would support any effort by Indonesia to join the TPP. According to Turnbell, “If Indonesia chooses to apply to the Trans-Pacific Partnership, we would support the application, absolutely.” Australia plans on sending its largest delegation to Indonesia next week, with over 300 companies planning to be represented.

What impact would Indonesia joining the TPP have on the deal? Do you think it is a good idea to add another country to the TPP?

How Smart, Connected Products Are Transforming Competition

By Michael E. Porter and James E. Heppelmann

In this extensive article, Michael and James offer a deep analysis on the Internet of things industry. They go over topics such as explaining what smart, connected products are and what can they do. They also suggest a five forces analysis where cracks in the current business model can be noted, especially in the threat of new entrants and the bargaining power of buyers’ areas which are the focus of this review. Titled as “Mistakes to Avoid” the pair break down a series of common misconceptions including functionalities that customers don’t want to pay for, the risk of security and privacy violation, timing, and overestimation. As companies such as Boeing and Caterpillar move profounder into this technology, it is critical for them to keep this ABC in mind that perhaps can save a several millions of dollars. Currently, both companies have increased their Machine-to-machine (M2M) capability by more than 50% in the past year only according to Core2 Groups analysts.

Original article: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition/ar/1

Boeing 777 Plant Security Tool Extends To IoT

By Kelly Jackson Higgins. Quick Hits

The importance of internet security cannot be underestimated. Nowadays, every device is susceptible to any sort of cyber-attack, and attackers cannot be identified, or at least, not easily. There’s no *69 in the IoT to help determine who or where is the other line attacking from, hence the best bet is to create a solid security system. This is what Boeing has found earlier and announced a strategic alliance with a start-up with strong background in security technology. It seems that the main production line for Boeing 777 in Seattle was under constant attack by estate sponsored hijackers, therefore it was priority to encrypt somehow the information flow within the company.

Original article: http://www.darkreading.com/perimeter/boeing-777-plant-security-tool-extends-to-iot/d/d-id/1317339

Vietnam Labor relaxations a good sign for TPP?

As the full text of TPP was released last week, we got a glimpse of the treaty’s contents and following implications. As seen before, there are many concerns regarding the alleged labor conditions in Vietnam and concerns from labor and human rights groups on including Vietnam in the treaty. Sure enough when the text of the TPP was released, many Labor advocates has doubted the enforce-ability of reforms in Vietnam from a legal point of view (Article credit: “After Trans-Pacific Partnership Text Released, Labor Advocates Say Human Rights Protections ‘Not Enforceable’”, by Abigail Abrams, 11/05/15 http://www.ibtimes.com/after-trans-pacific-partnership-text-released-labor-advocates-say-human-rights-2171278). Many labor organizations have an issue with Vietnam being given five years to comply with full labor standards before sanctions can be leveled against it. Many democrats have already criticized the agreement for respites given to Vietnam. What does this mean for Vietnam? Would this be one of the critical point that US lawmakers use to overturn the deal? Would a change in terms lead to Vietnam walking away from the deal?

Potato Growers support TPP agreement

An article in Weekly Mailer (November 17, 2015) titled “Potato Growers support TPP agreement” (http://www.minicassia.com/news/article_568ee7aa-8c92-11e5-afc5-efc25b97446a.html) describes the main benefits that the TPP deal represents for the U.S. agricultural industry, especially the potato growers. The National Potato Council has urged the Congress to quickly complete the review of the TPP deal in order to approve it. Currently 20% of the potatoes produced in U.S. are exported. Over the last 10 years the potato exports have grown 56% and were valued at $1.7 billion in 2014. The commercial agreement includes tariff reductions that support the critical growth in exports of this relevant economic sector of the U.S. How will this increase in U.S. exports affect the agricultural industry of foreign countries?

Who wins and loses in 21st century trade agreement

An article in CNBC (November 13, 2015) titled “Who wins and loses in 21st century trade agreement” (http://www.cnbc.com/2015/11/13/who-wins-and-loses-in-21st-century-trade-agreement.html) describes the controversial TPP agreement that has opened the discussion about the main benefits and trade-offs that this commercial deal represents. Tim Brightbill, who serves as vice chair of the U.S. government administrated Industry Trade Advisory Committee on Services and Finance Industries, mentioned that the tech and telecommunications sectors are beneficiaries of the deal. The TPP text explains agreements that will remove barriers to entry in the global market for technological companies. Another winner in the deal is the U.S. agriculture, considering that the TPP agreement increases access for US products abroad. On the other hand, some analysts foresee problems in terms of currency manipulation as a consequence of the TPP. Will the benefits outweigh the costs of implementing the TPP agreement? Will this advantage for technological companies boost further innovation in the coming years?

 

Is The TPP Killing Mexican Farming?

While there are many benefits to Mexico being a part of the new Trans-Pacific Partnership (TPP), there are also some potential negatives, one of which is explored in the article “Mexico food insecurity worsened by TPP” (https://www.greenleft.org.au/node/60670). As part of the TPP, tariff exemptions are extended to more countries. These tariff exemptions result in added “food insecurity and hard times” for farmers. The wide range of food products that will be imported tariff-free have the potential to threaten local production and goods such as grains, eggs, tuna, salt, oils, fruits, vegetables, and bulbs of the agave plant. “With the TPP looming, not only will Mexico be on the receiving end of waves of tariff free imports, but participating member states have also refused to cut subsidies to major agribusiness corporations involved in international trade. With cheaply produced imported crops on the market, local farmers may get pushed out, unable to compete with subsidized products”. The TPP has already been condemned by some for showing bias toward corporate and international public interests. This argument about Mexico’s agribusiness is only additional fuel to the flame. Can the TPP be restructured to compensate for the potential threat to Mexico farmers? What will the end outcome be?