so a lot going on. >> thank you for watching aljazeera america. i'm del walters and inside story is next. yet it is likely you haven't heard much about it, the tpp is the inside story. >> hello, i'm ray swarez. two of the world's three biggest economies rising industrial powers some of the world's biggest natural resource ex-porters, 11 pacific countries in all, including the u.s. have

been negotiating a free trade deal called the trance pacific partnership. the negotiations have been carried in secret, but largely shielded from public oversight. on the've of the 20th anniversary of the north american free trade act, are americans hungry, and removing barriers to the u.s. market, still the world's richest, the new treaty would govern trade between all the country as new handbook for their economic relationship, the negotiators meeting had hoped for a big announcement this week. >> there was disappointment in singapore tuesday, negotiations for the trance pacific partnership, or tpp, finished without a signed deal, talked will likely continue into the new year. >> we have decided to continue our work in the coming weeks towards such an agreement. we will also further our consultations with stakeholders and engage

in our respective political processes. the tpp is a giant free trade deal between 12 countries boarders the pacific's. member states include australia, chile, malaysia, mexico, new zealand, canada, peru, singapore, vietnam, japan, and the u.s. china is not a member, and is seen in some ways as the competitor. >> the talks are held secretly behind closed doors so that the content of discussions is unclear, but an internal memo made public by wickky leaks monday suggested that one country felt the deal went unsigned due to the u.s.' unwillingness to negotiate on most issues. from what we know, key topics include intellectual property. the u.s. wants stronger laws including criminalization of unintentional infringements.

investments, including investor state protections which can allow foreign companies to sue governments under international law. privacy, all member states want more privacy on information sharing, and most notably, the reduction or dropping of all terries. the primary goal, the u.s. and japan are still ironing out the provisions that cover industries like agriculture, and automobiles. in the u.s. the secrecy surrounding the talks has raised some concerns, but the administration is saying trust us, and the pushing forward is for the best. >> quite has a profound stake in what happens. because we need and we are and we will remain a pacific power. that sets a statement of fact. >> if the deal is signed the partnership will include countries responsible for 40% of

the world's gdp, and 26% of global trade. here in washington to talk about the tran pacific partnership, it's promise, problems and prospects. for southeast asia studies and co director of the partners initiative. and sue rob, senior research association for the consulting firm samuels international associations. this was supposed to be the week, why didn't it happen? well, i think they are not going to make this year. i think largely the reason is that the president didn't make his trip to asia in november. and that was a time where it really matters. the political leadership, the big push has to take place.

are waiting to see capitol spent on something called trade promotion authority, which is a basically gives congress an up or down vote. and until the president moved on that, i think we are not close to this agreement. i do think the next benchmark is his trip to asia in april, and before we goes he better have tpa, on the hill, and going in the right direction, or this agreement could be in trouble. >> and remind people what it is? >> trade promotion authority. it means that congress will get to vote up or down on an agreement, they don't get to put all the onments like a christmas free on the bill. >> is there one issue or another that is getting most of the attention from these dozen or so states? what might the sticking point have been

this week? >> i would say two issues which have really come the the floor. and are creating complications in this negotiation. one of which is deemed to be a 19th or 20ty century issue. the 20th century is market access. but market access related to sensitive items. which is difficult for developed countries to concede -- to make concessions on, because the level of protection is very narrow but significant. the other sector on which there is a significant amount of -- impacts on the interest of the developed world, is intellectual property rights. it is a fear and complex chapter retted to patriots, copy wrightsest, and a lot of

developing countries feel they require some element of special treatment, or policy space in this regard. these have been two issues which have been for quite a while fairly combustive, and there are still gaps between the two sides. >> well, taking a quick look at this list, half of these countries still have pretty significant clothing and text tile industries, what are they afraid of here? that there will be a race to the bottom and inside a community of this size, it would only be the lowest cost that can pay the lowest price for labor? that has been one of the considerations at the end of the developed countries. that in these specific niche areas, particularly textiles, electronic goods, i would say the tariff is already down, and the level of protection is pretty low in the developed world, that the developing

countries have huge competitives, advantages to be able to export and perhaps put industries sectors, regions in -- in the developed world in the united states maybe canada, e.g. create job losses, but i think we should look at this slightly more wildly. for example, when i talk agriculture, the australians would like to access the market. the americans would like to access the canadian the z the japanese market, and they would like to protect their markets so it is all within the developed world. so the equations and the combinations are fairly complex in this agreement, and don't just cut across developed and developing countries. >> why does this even exist in the first place? what are the pressures right now in the pacific world? some of the fastest growing economie

economies in the. why do this at all? well, because these are the most dynamic markets in the world. and asia is growing like crazy. it has two-third oz if world's gdp. and world supply chains all run somehow through asia. so what is happening, ray, is that asia was going through an economic integration process that didn't include the united states. because we hand been participating in some of these trade opening agreements. with do have by lateral agreements, in fact many of them who are already in the agreement. with had a free trade agreement with singapore, we have one with korea, korea is not a member of the tpp yet, but it will be. but we didn't have at the table for the discussion about how they are going to organize the economies going forward.

the round that bill clinton hosts in seattle. and the singaporean whose are a tiny country, of about 5 million people they live on trade. so they are the cannonry in the coal mine. the singaporeans can end up dead on the floor. so they had pushed an agreement that was originally called the p 4, which was a group of small countries but it had a trance pacific nature. and we only joined that at the beginning of president obama's tenure. he picked up the file on top of the end box, from president obama, and it was the tpp. we are going to hear about the opposition when we come back, we have to take a short break, stay with us, you are watching inside story.

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welcome back to inside story. before the break, we heard a fairly thorough credit teak. not just about trade, which is often the lead of these discussions. about the rules the handbooks that would govern the trade. given what you heard, what's in it for the people of the country on this list request the highest per capital income? the problem with the scenario, is the person going to the mall would haven't a job. we would not be plugging

in to asian markets. and be able to sell american products, goods, services, we would really use the dynamism. we would lose the ability to be competitive and participate in the fastest growing part of the world's economy. which is the asia pacific. so. >> as they have grown, and not really bout that much from the united states. >> no, absolutely wrong. the southeast asian countries for instance, collectively are the united states fourth largest overseas market. they buy our products, our services, their educate their kids here, we have got to be part of organizing these markets and be part of the dynamism of them. if we don't, we would -- and lori's scenario, we would disarm ourselves and walk away and say to china and other countries, go ahead, you guys broe, you be the dynamic markets we will pray to god that we can

live within our own boarders and grow our economy as americans only. >> by the way -- if other countries did that, we would be in serious trouble. if they took the actions that lori has esspoused here. so it is a very short sited, it isn't a real world sort of scenario. >> expect we are all in the w ao, so we are trading with each other. it isn't the version of tpp. the status quo is a high level of trade, but with respect to the actual data, while we have heard what the talking points are the benefits, in fact, even when we were having domestic growth, we had income and equality increasing and medium wages decreasing now as you know as 1970's levels but that happened before the crisis that has happened over 20 years of the world trade organization in 1/2 that, as we have watched out 5.3 million u.s. manufacturing jobs in 18 years.

for the 2,000 factories department of labor says an average, the u.s. worker loses $8,000 when they go from the manufacturing job to a service job, that is the lived experience, which is why you have most members in congress who have said they won't give fast track, trade promotion authority, which basically handcuffs the ability to make sure the agreements work. why? it's not that they are against trade, they just don't want nafta on steroids with the pacific rim. they want different terms are they get the benefits of trade. and the thing that is then -- the biggest problem is the outcomes of the last fast track trade agreement with asia. so we heard all those same arguments around the korea agreement. >> 18 months into it, u.s. trade deficit with korea up 40%, not only did we get slammed with a tsunami of additional imports our experts

dropped 8% so congress is looking at that and saying okay, using the multiplier, that's 40,000 more lost jobs. >> can we satisfy both earnest and lori? keep americans working and raise their pay and still be a dynamic trading nation with places where workers make a lot less money, and do a lot of the same jobs that americans aspire to do for less money? absolutely. >> how? >> and the way to doha is to be a trading nation, because the majority of the sectors in these countries that we are talking about, are sectors in which the u.s. has a competitive advantage, and can -- and has a competitive advantage and by exporting products through those countries or by exports even investment to the countries can create additional jobs in this country. as i said before, there are distributional consequences to that, and therefore the issues like education, policy,th, which have been taken

into account to allow the americans to participate in these export opportunities. but the way for american to grow, for immediate i am incomes to broe, is not to reign itself in, but to integrate itself more. >> so it sounds like from what the three of you have said, the r the last half hour, there are losses if we go to the widest free trade, and losses if we don't? this is conversation has to continue, thank you to you for being here that brings us to the end of this edition of inside story, for being with us, the program is over, be tough conversation continues. visit us online in washington, i'm ray swarez.

welcome to al jazeera america. i'm del walters, these are the stories we are following for you. guns in america. al jazeera america focusing on the violence, the laws and the political debate. an american missing in iran was working for the cia on a government mission. and this scene could be playing out in several states over the weekend. another big snow storm headed our way. ♪ tomorrow marking one year since the sandy hook ac