Dive Brief:
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After weeks of legislative turmoil and hesitation by members of his own party, President Barack Obama Wednesday won “fast-track authority” that smooths his administration’s negotiations and the eventual adoption of the Trans-Pacific Partnership.
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House Democrats were standing in the way of fast-track passage for weeks, but agreed to terms that include assistance for workers that may see their jobs or wages diminished with increased trade with Asia.
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Because of its Asia focus, the TPP will have a significant impact on apparel retailers and others that source and manufacture merchandise there, and is widely seen as an antidote to China’s dominance in Asia.
Dive Insight:
Worries in Congress about the TPP’s long-term effects, especially on employment and wages, for a while seemed to put in doubt the President’s ability to effectively sit at the table. But, with some compromise and apparently some amount of resignation, Congress has granted Obama (and future Presidents) the ability to negotiate and decide terms of the deal and, ultimately, to present a done deal to Congress for an up or down vote.
Details on the TPP are scarce, but there’s little doubt that American retailers, who have sourced much of their wares in Asia for decades now, will be affected one way or another. With China emerging as a formable economic power, there’s a basic sense that the U.S. is wise to ensure that Asia remains a vibrant area of trade.