Mexico has its own Trans-Pacific Partnership issues
While many in the US political scene are afraid the TPP will unfairly benefit Mexico at the expense of US jobs, many in Mexico are concerned the TPP will actually have a negative impact on their country. Trans-Pacific Partnership issues exist in both NAFTA partner countries.
The TPP in Mexico
Many nationally known politicians in the United States are decrying the Trans- Pacific Partnership as a sure-fire way to send US jobs south of the border. The pact is an international trade agreement which addresses matters of market access and tariffs and is being heralded as an avenue of enhancing trade among Pacific Rim countries with the notable exception of China. Members include Australia, Brunei, Canada, Chile, Malaysia, Mexico, Japan, New Zealand, Peru, Singapore, the US, and Vietnam.
The agreement is estimated to encompass 36% of global GDP, 25% of global commerce, and 28% of all foreign direct investment. If all 12 countries ratify the agreement, the trade region would represent 11% of the global population and approximately $9.6 trillion in global commerce.
Mexican Trans-Pacific Partnership issues
While the TPP is seen by some as unfavorably benefitting lower-wage countries like Mexico, many Mexicans would disagree and feel their country shouldn’t even ratify the agreement. Of all the countries signing on to the trade accord, Mexico has the most free-trade agreements already in place. This means Mexico already has access to 58% of the world’s GDP, 53% of global commerce, and well over one billion potential consumers. For some, the argument is that Mexico cannot benefit from making trade concessions when the country has already done so much to open trade up with the world on their own. Therein lies the Trans-Pacific Partnership issues that many Mexicans harbor.
Others feel that, after decades of protectionist tariffs, terms of the TPP will harm smaller businesses in Mexico without the depth of resources needed for conducting trade internationally, thus benefitting only those firms in Mexico that are already international in scope. The fear is that domestic businesses in Mexico will lose ground to international companies, yet others point out that Mexico is far more acclimated to international trade than protectionist Brazil, for example.
The country is undergoing its own internal debate on the Trans-Pacific Partnership issues pros and cons of ratifying the agreement simultaneous to the US dialogue. As was the case with NAFTA, trade agreements are typically a complex issue with many shades of loss and benefit inherent in the negotiation.