Thursday, 30 July 2015

How will the TPP affect small businesses and local industry?


In order to understand the effect of a trade agreement like the Trans-Pacific-Partnership we must understand another trade agreement that was signed within the last month (17/6/) by Trade Minister Andrew Robb - The China Free Trade Agreement. This agreement (CHAFTA) still requires parliament approval to be finalized (we can still stop this - go here - http://australianunions.org.au/china_fta)

What has this 'free trade' agreement that is said to cause the 'creation of jobs and industry opportunities for Australia' actually doing?

Let's analyze this for a minute...

We have small businesses and local industry in Australia and things are going OK. They are generally struggling but people can get by and expansion is possible for those who push ahead. Well, what happens after a trade deal like the one with China is put through?

Chinese labourers in Chinese mines, with chinese trucks, in chinese trains, on chinese land to chinese ports to be taken away to china for chinese profits under chinese labour standards and paid a chinese wage.

Where does Australia fit into the picture?

It doesn't. No Australian benefits from this deal.

Now let's look at the TPP.

It also contains the international court settlement dispute clauses to protect corporations from laws of a sovereign country that cause loss of profits. The Australian market will be flooded with more cheap goods and services disregarding Australian quality control and Australian regulations. Local business won't be able to keep up with the new trend. People will go out of business and  'free market capitalism' will have another nail hammered into its coffin. The 'trickle down effect' does not trickle down on its own. Laws and regulations must be put in place to respect small and local business or capitalism as we know it cannot be sustained because too much wealth becomes concentrated in big business and big business makes all the rules for business.

So the only way capitalism can continue is by maintaining an even playing field for small and local businesses. If big corporates are given rights to step on everyone else we no longer have capitalism.

Some say this is a transition into a 'better, different world' - which fantasy are you living in? Have you noticed how many people the technological revolution has actually benefited? Not the you and me of the middle to lower classes. We have longer working hours and as inflation rises due to the inability to produce our own goods, due the market being flooded with too much commodity from overseas we will not be living our comfortable Australian lives like we are used to. We currently live in the shadow of all the wealth, having not created the wealth ourselves and that shadow is moving. As local businesses sell off, corporate take-overs of small industries will become common place.

See this article on '4 Reasons Why The Future Of Capitalism Is Homegrown, Small Scale, And Independent' - http://www.fastcodesign.com/1665567/4-reasons-why-the-future-of-capitalism-is-homegrown-small-scale-and-independent
Things are going to change and change quickly under the TPP. Let's understand this is not good for us, only for those that happen to be at the very top of this pyramid economy. They also happen to be the ones in control of what is said on TV and in Newspapers while little undiluted public opinion gets through.

There are only so many pieces in a pie
Imagine a pie. How many pieces would we have? Let's cut it into ten pieces. Ok, we give away 5 of those pieces to different parties and we have five left - now let's cut the remaining five into 10. We give away some of those pieces and we are left with what we need to survive upon. Now imagine this pie is Australia and that each time we sign a trade agreement with ISDS provisions we effectively give away that part of the pie for good. These deals are near-on irreversible once signed. It is easier to make the right decision now instead of having to face the consequences of bad decisions for Australian business later. We only have so much industry, resources and purchasing power in Australia, if we promise so much to other countries, we only have so much left for ourselves. It is common for developing countries to sign international trade deals with ISDS provisions becausee they want the 'freedom' of 'free trade' but in more cases than one, this has proven to be their downfall.

Australia has so much and we can be smart with what we have now, instead of dealing optimistically with bad consequences later. We are comfortable as we are now but our way of life is under threat by predator capitalism negotiated by corporate advisors in trade deals that include ISDS provisions. If we allow others into our markets the size and competitiveness of the bits Australian businesses will be able to access will be greatly reduced.

Welcome to the 'Brave New World' and '1984' 31 years late!
Then there are the 605 unnamed companies driving the TPP. Other countries participating will certainly intend to have more out of the agreement than they intend to give, else why fight so hard, and in secret, to have the agreement in the first place. The same goes for those 605 companies - and the lawsuit we are seeing from Philip Morris against Australia using an ISDS provision presages what is forthcoming when our laws on food safety, product safety, pharmaceutical copyright period are perceived counter to that of corporate profitability.

THEN our country will be governed by the economic aims and profitability of the signatory countries and corporations instead of by our duly elected representatives. 

Government relies on our ignorance of these trade deals and our inaction which gives them our implied consent. Implied consent means that if you do not actively dissent, it is assumed by being passive, you consent.

We need to work together to make a stop to this corporate control of government and take control of our government as a commonwealth for the people.

Act or be acted on. These are your options.

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