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September 18, 2022
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Signing of the TPP-11: the new source of discord between I Approve Dignity and Democratic Socialism

The eventual ratification of TPP-11 in the Senate could open a greater gap between I Approve Dignity and Democratic Socialism, and this is because the final approval of the controversial treaty, called “Comprehensive and Progressive Agreement for Trans-Pacific Partnership”, is probably the subject of future that further distances the two coalitions that support the government of Gabriel Boric.

In I Approve Dignity there are those who believe that the idea of ​​putting it back on the agenda is a ruse by the opposition precisely to cause a break between the two conglomerates, so they call on the President not to fall into the game and focus his legislative agenda on matters that they make sense to the population, not to a group of big businessmen, who are the only ones who, in the opinion of those critical voices, are favored by a development strategy based on trade liberalization.

One of those who has expressed his rejection of the TPP-11 is the deputy and former union leader Andrés Giordano. “Since my union days, I have been an opponent because of the problems that it represents not only for the sovereignty of the country, but also because of the risks that the ratification of the treaty represents for the profound transformations that Chile requires, such as working conditions, or care for the environment, for food security and social rights, issues that always come into conflict with the interests of big capital”, asserted the Frente Amplio deputy.

“Unfortunately, the issue is now in the Senate,” added Giordano, recalling that the weight of his coalition in the Upper House is a minority. “I think this responds to pressure from a right that tries to position issues that are complex for the government’s transformative agenda,” she said, acknowledging that without a doubt “this generates tensions between the two coalitions.”

“In the Lower House I Approve Dignity has a look of concern about what it represents for the Government’s agenda”, since the signing of TPP-11, with its formulas for resolving conflicts between transnational companies and the State, more well harms the interests of the country, since it empowers companies to sue the State if any of its legislative or administrative actions result in an affectation of reasonable profit expectations”, and this in a country like Chile, where It has become reasonable, Giordano recalled, that the AFPs show profits above 20% of their equity.

“Any law that tends to protect the environment, any regulation that affects that expectation of profit will mean a risk of judgment.” Giordano recalled that, in effect, there are other countries that we admire (Australia, New Zealand, etc.) that have signed the TPP-11, but they are developed countries that already have higher environmental and labor standards. “It would be very inopportune to ratify something like this when we should rather put on the agenda those transformations that make sense to citizens, and not a TPP-11 that will put a brake on the pension reform, the tax reform and the project of 40 hours,” he added.

Likewise, the Frente Amplio deputy recalled that up to this minute no official from the Foreign Ministry or any economist has been able to prove the benefits that the ratification of TPP-11 would generate, while asking to carry out an evaluation of this strategy as it should be done with respect to any policy. public. Giordano recalled that the signing of free trade agreements had an impact on Chile’s fall in the value chain, and this is evident in a matrix tied to the commodity and low wages, which are two of the elements on which competitiveness rests. from the country. Regarding the possibility that the business community is pressuring the government, Giordano said: “The Chilean business sector must take lessons from the political moment of the last three years. We are not just coming out of an exit plebiscite. There are many things that are not resolved and that are a priority and that led Gabriel Boric to the Presidency. If businessmen do not take note, we are going to have a social problem”, he added.

Insulza bets on its ratification in two months

On the other shore is a staunch defender of the Chilean model of openness to the world. “I am very, very supportive of TPP-11 and I think it is a good idea that it be approved in the Senate,” said the socialist senator from Arica and Parinacota, José Miguel Insulza, who is a member of the Chamber’s Foreign Relations Committee. High.

Although he was in favor of advancing in the ratification, he asked the Government, specifically the Foreign Ministry, to carry out socialization work to win more followers and grant greater social legitimacy to the controversial treaty signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, countries that together have more than 500 million consumers. So far, eight countries have already ratified their entry into this trade integration agreement.

“I remember when we were negotiating with Congress to approve the treaty with Mercosur, and then there were many doubts with some senators from the then opposition. I’m talking about the time of Eduardo Frei Ruiz-Tagle, and I met one of them and he asked me ‘how’s the Mercosur thing going?’, and I told him ‘I already have enough votes’, and the senator told me ‘and why don’t you get us all together?’ And the truth is that I listened to him. What I mean by this? That every effort must be made to get the majority of the people to vote in favor of it,” said Insulza, who has dismissed many questions about the alleged restrictions that such a treaty would impose on any national strategy based on industrialization and productive innovation.

Insulza recognized that the ratification could generate friction between the two coalitions. “I do not want that to happen, and that is why it is necessary for the Foreign Ministry to advance in the line of highlighting the benefits that foreign trade has brought Chile as one of the pillars of our development. That way this would not be the origin of a dissidence. That is why it seems to me that the best thing is to give it a couple more months of discussion, ”she added.

“The ideal thing would be for the TPP-11 to be ratified by a large majority, that is why I ask that the minister (Antonia Urrejola) and the undersecretary of Economic Relations (José Miguel Ahumada) continue down the path of forging agreements on the matter because I think that it is a good deal. Hopefully it gets approved,” he concluded.

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