Translating the TPP’s Effect on Your Business

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There is a lot being written and said about the TPP and what it could mean for American businesses and workers. Like all political topics, there are people for and against it. Almost every aspect of the TPP is speculation at this point, as Congress is still deciding if it will accept the agreement or not. But in the meantime, it’s important for companies that wish to trade internationally to learn about the TPP and decide where they stand and how they could benefit or be harmed by it.

As discussed in last week’s legal blog, the TPP will give unprecedented trade access to the U.S. and 11 other countries by eliminating thousands of trade barriers. With so many people, goods and services involved, there are many viewpoints regarding the pros and cons of such a trade, especially with regard to its potential impact on the American people.

The TPP has formed strange political alliances and foes throughout its 7-year journey. According to a U.S. News post, President Obama is the agreement’s main driving force, with fellow supporters from the Republican party like former Florida Governor Jeb Bush, the business sector and free trade advocates. Surprisingly, all of the current presidential potentials, Hillary Clinton, Donald Trump and Bernie Sanders, disagree with the TPP and do not support it in its current state. The agreement’s main opposition comes from progressive democrats, advocacy groups and labor unions. To learn more about each candidate’s stance, visit this website.

According to the National Association of Manufacturers, the TPP will eliminate hundreds of millions of dollars in tariffs, reduce foreign government barriers and set more transparent trade standards. Supporters of the agreement claim that small businesses will thrive due to the revised trade barriers that often challenge entrepreneurs, including complex paperwork, customs regulations and delivery. By eliminating these hindrances, small businesses should be able to take their company’s goods and services global and compete with larger corporations.

Fortune published an extensive list stating why the TPP could benefit small businesses. Some potential gains include reduced corruption due to anti-bribery and conflict-of-interest laws, nongovernment-subsidized state-run entities and the elimination of foreign ownership restrictions. Fortune argues that the TPP will open up new markets to small businesses, allowing them to share in the prosperity and opportunity afforded to larger, more established companies. Since small businesses make up a significant portion of the U.S. economy, common sense suggests that easier trading for these companies means increased growth and profits for Americans. Supporters also highlight the fact that countries who have previously opened themselves up for trade have become more financially stable and secure compared to other countries that have shut themselves off from international trade.

On the other side of the coin, a potential negative effect the TPP could have on small businesses is that it could possibly increase the speed of competitive erosion. While the TPP will level the playing field, some people are concerned that it will take away too much of America’s competitive advantage. Others believe that the corporations will eventually triumph over working people, while yet another major fear is that it will be the end of manufacturing in America, specifically the auto industry, causing job loss, heavy reliance on other countries and currency devaluation.

Market Watch published a comprehensive argument stating the possible negative effects of the TPP. While the agreement has been discussed, negotiated and planned, it is still only a theory. Many of its predicted outcomes are simply conjectures of best-case scenarios. The U.S. government predicts that the economy could be 0.5% higher in 2030, due to the TPP, but this figure is probably the most optimistic possibility due to the fact that it’s hard to quantify such numbers based on variables that are almost impossible to realistically test and analyze without having the agreement in effect.

The article also points out that there is a proven negative correlation between increased imports and decreased American labor. If this were to happen, it could be more difficult for skilled American laborers to find work or advance in their current field as they can now. It is likely that the current and next generations would struggle to find balance within the workforce, while future generations would have the opportunity to prepare and educate themselves to be successful in the post-TPP world. If manufacturing jobs are eliminated or severely reduced, as many fear they would be, it could be almost impossible for current employees to find another job that is equal to their current position.

Market Watch also states that it’s dangerous to base such a large decision on models alone, suggesting that the TPP would make it easier for corrupt companies and organizations to take advantage of everyone involved. According to this article, the TPP’s rewards are not worth the potential risks.

Both sides make valid arguments, laying out the potential gains and possible setbacks. Nothing is set in stone just yet, but either way, international companies both large and small will be impacted. ASTA-USA Legal can provide your company with flawlessly translated legal documents and boost the success of your company with our 100% accurate translation services. Our skilled, accredited human translators will give your confidential legal documents the utmost attention so that, regardless of the current trade agreement, your company can thrive on the international market with accurately translated legal documents.

Contact us today for a free quote and let us help you establish your global presence.

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