From the rhetoric of proponents of the Trans-Pacific Partnership (TPP), a sweeping trade and investment pact between the U.S. and 11 Asia-Pacific countries, it would be easy to conclude that the agreement is an economic panacea for the shrinking middle class and stagnant wages faced by most workers in America. The reality is more sobering: There are good economic reasons to believe that TPP will not only fail to provide the promised benefits but actually make things worse.
Yes, economic gains can be found through trade liberalization where trade barriers are high, but tariffs are already low (just 2.7 percent on average between TPP member countries). Put this minuscule number next to the surging U.S. dollar, up 26 percent since July 2011.