Stop the Trans-Pacific Partnership (TPP)
Josh Nassar
UAW Legislative Director
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I) Importance of the U.S. Auto Industry
•Record Sales in 2015
• 17.5 million cars and light trucks, a 5.7% increase
from 2014
•Leading U.S. Export
• 2.1 million light-duty vehicles exported in 2014, a
73% rise from 2004
•Supports 7.25 million jobs
• Every single assembly plant job creates 9 to 12
jobs for workers at suppliers in the surrounding
community
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II) U.S. Manufacturing
•Lost jobs—The U.S. lost 5 million
manufacturing jobs from 2000-14, 3.6 million
due to trade agreements
•60,000 factories have been shut down
since 2001
•Non-tariff barriers
•Value Added Tax (VAT)
•Currency Manipulation
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III) NAFTA – North American Free Trade Agreement
• Implemented in 1994
• Promises:
• New jobs
• Increased trade surplus with Mexico
• Improved labor standards in the U.S.
• Reality:
• Over 700,000 jobs lost, $6.9 billion trade deficit
with Mexico
• Jobs outsourced to Mexico where auto workers
often make less than $4 an hour
• Mexico has a dismal record on labor rights
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IV) Foreign Direct Investment in Mexico
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V) The TPP – 30 Chapters
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VI) Trans-Pacific Partnership - TPP
TPP Participants include:
•
•
•
•
•
•
U.S.
•
Japan
•
Australia
•
Brunei Darussalam •
Chile
•
Malaysia
•
New Zealand
Peru
Singapore
Canada
Mexico
Vietnam
These nations cover 40% of the world’s GDP
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VI) Trans-Pacific Partnership - TPP
Docking:
• TPP is designed to allow countries to join in the
future as long as they agree with the standards.
• South Korea, Indonesia, the Philippines, and
Thailand have already expressed interest in
joining.
• Thailand has the biggest car market in South-East
Asia with 1.44 million vehicles.
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VI) Trans-Pacific Partnership - TPP
Market Access Chapter
United States Auto Market
45%
Vehicles
Vehicles
sold
by
Made
domesticUS
auto
Outside
companies
45%
55% Vehicles
sold
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Vehicles
foreignMade In
based
Theauto
US
companies
55%
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VI) Trans-Pacific Partnership - TPP
Market Access Chapter
• TPP includes countries with Closed Markets and
Non-market economies
• Non-tariff barriers
• Value Added Tax (VAT)
• Bilateral Agreement with Japan
• Cars
• Trucks
• Parts
• Currency Manipulation
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Currency Manipulation
VI) Trans-Pacific Partnership - TPP
Investment Chapter
• Investor-state dispute settlement
• Special rights for corporations
Labor Chapter
• Falls Short
• Minimum wage can be 5 cents an hour under TPP and
still comply
• Lack of Enforcement
• Only one workers’ rights case has been pursued (in
Guatemala), workers are still awaiting final action 8 years
later
• No plan for Mexico to ensure workers have the right to
organize
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VI) Trans-Pacific Partnership - TPP
Rules of Origin Chapter – ROO
Worse than NAFTA!
• 45% – Over half the value of a car or truck can be
built by non-TPP countries, allows free riders to
prosper
• NAFTA is 62.5%
• Threshold for auto parts can be as low as 35%
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VI) Trans-Pacific Partnership - TPP
•
•
•
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Environment Chapter
State Owned Enterprise (SOE) Chapter
Intellectual Property Rights (IPR) Chapter
Procurement Chapter
•
Threatens Buy America laws
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VII) TPP – Timeline
•Scheduled to be signed by U.S. and other
participants on February 4th
•Congress to vote on it 60 days after it has
been submitted by President Obama to the
Congress
•Cannot be Filibustered or Amended due to
the Fast Track law
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VII) CAP Workshops and Lobby Day
•Learn how to share your concerns and
support for solutions at CAP workshops
•Workshops will be led by Active UAW
Members and a policy expert to answer any
questions you have
•Make your voice heard on Capitol Hill and
back at home!
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…WHY we need your voice
•Over 11,100 corporate lobbyists in DC
alone
•In 2015, the Chamber of Commerce
spent over $64 million in lobbying
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Josh Nassar
UAW Legislative Director
1757 N Street, NW
Washington, DC 20036
Office: (202) 828-1614
Email: JNassar@uaw.net
et/opeiu494
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