Business as Usual: the Trans-Pacific Partnership Agreement (TPPA) as a case study to understand Its Impact on Chile and Peru’s Democracy

Abstract

The Trans-Pacific Partnership Agreement, initially negotiated between twelve Asia-Pacific nations, is arguably the most significant preferential trade agreement on the international trade agenda of the twenty-first Century, with the initial inclusion of three of the world’s largest economies: the United States, Japan and Australia. There has been, however, considerable debate questioning the different aspects relating to the protocols followed, as well as its design, thus earning its reputation as the most controversial trade deal ever signed. One central question is to what extent this Agreement benefits both the participating nations and their citizens. Moreover, prior to signing, the Agreement was severely criticised for the unprecedented secrecy in which negotiations took place, rendering citizens powerless and debilitated against an initiative that would potentially devastate the economic, political and social aspects of their life. Following the official release of the full text of the Agreement, it has become increasingly evident and alarming for the general public, as the Agreement incorporates provisions that go beyond tariffs and quotas, to reach across borders and impinge on the legislative rights and processes of the domestic governing authorities. Upon examination of the provisions that relate to the industries of pharmaceuticals, agriculture and knowledge and information, it becomes clear that the vast majority of the regulations of the TPPA serve private interests of the corporate sector, without consideration for democratic values that serve to protect the interests of the people. Intellectual Property is the most controversial chapter of the Agreement as it extends the term of protection for patents and copyrights beyond the international norm, impacting all three of the aforementioned industries. In the Pharmaceutical Industry, extended patent protection terms on drugs prevent generic medicines from entering the market, thus restricting the accessibility and availability of affordable drugs for ordinary citizens. In terms of the agricultural sector, multinational corporations -such as Monsanto that hold influence over a considerable percentage of the US seed market- will enter the domestic markets of the member nations, as facilitated by the elimination of trade barriers, and eventually dominate the global seed market by driving out local seed varieties as a result of foreign competition. Finally, in terms of knowledge and information, copyright protection is strengthened to the extent that citizens will become less inclined to share and produce information online, in fear of unjust penalties and convictions that are seemingly justified by the TPPA, thus creating a climate of fear and self-censorship, with all the implications this brings in terms of freedom of expression, and knowledge exchange and production. This thesis concludes that the TPPA undermines national sovereignty as well as democracy, as states are forced to endorse private interests at the expense of the wellbeing of their citizens.