Entertainment Sectors to Benefit on Pacific Trade Deal

Which sectors will benefit from the Trans-Pacific Partnership trade deal? Quite a few, according to one expert.

"The TPP treaty will give U.S. businesses better opportunities to export U.S. goods, services and investment capital into the 11 countries that are our TPP partners," explained Matt Gold, an adjunct professor at Fordham Law School in New York. Gold, who also served as a former Deputy Assistant U.S. Trade Representative.

"The businesses that produce goods or services with respect to which we're competitive in the global economy," he stated. "For example, the United States dominates the world in legal services, financial services, the insurance industry, business consulting services, also in entertainment, movies, television, music."

On balance, Gold said trade agreements typically create a much larger number of jobs than the number of jobs lost. But some industries in which the U.S. is less competitive may experience job losses. According to analysis from the Peterson Institute, the TPP will lead to an additional $123.5 billion a year in U.S. exports by 2025. The TPP is one of the biggest trade agreements ever negotiated, with the participating countries representing 40% of the global economy.

Specifics about the long debated, 6,000-page treaty were released by the Obama Administration this week. The treaty still must be approved by Congress, which is divided on the issue. Gold believes the TPP isn't just about economics.  "The TPP will put the United States in a very strong strategic position with respect to China and Russia," said Gold. "When almost all the countries in the Pacific and Central Asia have joined the TPP, China and Russia economically will have absolutely no choice but to join."

But Gold doesn't see that happening right away. "It will take 15 years before those countries get over the sticker shock. It will take another 10, 15 years before they actually come into the TPP. But that will be a major transformation, and that strategic positioning is probably the greatest positive point that I see in the big picture in the long run for the Trans-Pacific Partnership."

By Rhonda Schaffler 

Source:http://www.thestreet.com/story/13356317/1/financial-consulting-entertainment-sectors-to-benefit-on-pacific-trade-deal.html