It was not necessary. Commercial and investment transactions such as Nafta and T.P.P. are very complex legal texts written in favour of multinationals and large investors. A well-known economist once found that a “free trade agreement” could be on both sides and could simply say that all tariffs between two or more countries would be eliminated. The T.P.P. has 30 chapters and thousands of unfathomable pages. These rules extend copyright and patents that increase the profits of drug manufacturers, software companies and Hollywood. The T.P.P. will also expose U.S. consumers to dangerous imported food products, allow large companies to attack U.S. health and environmental standards, and reverse Wall Street reforms. Some argue that trade, trade agreements and globalization in the broadest sense have contributed to increased wealth and income equality within countries. Growing income inequality at home is not only found in the United States or even in industrialized countries, but also in developed and developing countries.
Despite the emphasis on academic literature, there is no consensus on the direct impact of trade or trade agreements on income inequality. The impact of trade and trade agreements such as the tPP on economic growth and employment is often one of the most controversial issues. Economic theory concludes that the economy as a whole benefits in the long run from a more open trading environment and increased competition, as such an environment pushes an economy to use its resources more efficiently. Standard economic theory also recognizes that some workers and producers in the economy may benefit from a disproportionate share of the short-term adjustment costs associated with resource transfers due to increased international competition. While it is difficult to measure adjustment costs for businesses and work, some estimates indicate that they are significant in the short term and can cause disruption to certain segments of the labour force, some businesses and communities. Closed facilities can lead to low levels of commercial and residential real estate and a loss of tax revenue, with impacts on local schools, local public infrastructure and local sustainability17 Discussions on trade as a whole, and in particular trade agreements, often focus on the potential effects on economic growth , income distribution and job losses.4 Most economists argue that liberalized trade brings benefits to both economic costs and benefits. but that the long-term net effects on the economy are generally positive. They argue that the economy as a whole is functioning more efficiently through competition from international trade and that consumers benefit from a greater variety of goods and services at different levels of quality and price than is possible in an economy closed to international trade.