Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Fast Tracking the End of U.S. Sovereignty
While President Obama was selling Obamacare, he repeatedly told the American people, “If you like your health care plan, you can keep it.” But soon after Obamacare passed, the health cancellation notices went out.
Now President Obama is selling Obamatrade and has come up with a new lie. On May 8, 2015, he told an audience in Beaverton Oregon:
But Congress’ think tank has found that the Trans-Pacific Partnership (TPP), the first of the trade agreements that Obama is negotiating, would indeed change U.S. laws. Senator Jeff Sessions reports:
What is President Obama negotiating into TPP? The following all appear to be likely:
Here’s how Obama-type trade agreements work: If any existing U.S. law or regulation violates the agreement, foreign businesses can sue the U.S. government for monetary damages through the agreement’s Investor-State Dispute Settlement provisions. After paying a few billion dollar fines, Congress is forced to change U.S. law.
Such fines are not needed in order for the dispute settlements in the trade agreement to function. The World Trade Organization arbitrates disputes without requiring that countries give up their sovereignty.
If both the Senate and House vote for Fast Track, then after Obama finishes negotiating TPP, there would be an up-or-down vote in each chamber (no amendments permitted) on whether to pass it. Governor Huckabee anticipates the atmosphere that would surround those votes:
If, on the other hand, either the Senate or House rejects Fast Track, Obama, or the President that follows Obama, could still finish negotiating TPP and then bring it before Congress. In such a case, though, Congress could thoughtfully preserve U.S. sovereignty by amending out the ability of the dispute arbitrator to assess fines upon governments.
Journal of Economic Literature:
Atlantic Economic Journal: