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Law, Economics, and National Security of History’s Largest, Longest Free Trade Agreement TPP OBJECTIVELY Raj Bhala Associate Dean for International and Comparative Law Rice Distinguished Professor University of Kansas School of Law International Legal Consultant The Al Ammari Law Firm, Bahrain and Saudi Arabia In Association with Blake, Cassels & Graydon LLP, Canada TPP Objectively Forthcoming October 2016 • ISBN 978-1-61163-959-9 Here, at last, is the first comprehensive, objective analysis of the legal, economic, and na- tional security aspects of the Trans Pacific Partnership (TPP). TPP Objectively is about the largest, longest free trade agreement (FTA) in human history. In careful, thoughtful prose, this 600-page book covers the most important controver- sies of the 6,000-page FTA, including sensitive agricultural and industrial sectors, services, intellectual property, currency manipulation, investor state dispute settlement, and labor and environmental rights. TPP Objectively is innovative, being the first to highlight the importance of women's and LGBTQ rights in the context of FTAs. The book also covers the history of TPP negotiations, from inception to conclusion, and reviews the relevant economic and national security theories, including free trade and containment, showing how they apply to specific provisions in TPP. In a world in which the debate about TPP, and international trade generally, is highly po- larized, TPP Objectively is an essential resource because it is a balanced presentation. The author, renowned for his International Trade Law and Understanding Islamic Law (Sharīa) textbooks, spent several years studying all sides of the controversial issues, and con- ducted first-hand research in 11 of the 12 TPP countries, and several non-TPP countries (in- cluding India, Indonesia, and Korea). The text is thoroughly referenced, with hundreds of citations to different sources from around the world to help readers get a clear, well- rounded understanding of TPP. TPP Objectively is not only for specialty audiences, such as scholars, teachers, and stu- dents in international trade, international economics, and international relations, but also for general readers interested in international law and policy, including legislators and their staffs and other decision-makers engaged in international trade agreements. How to Order / Request an Examination Copy To order, please visit this book’s page at caplaw.com/TPP. If you are interested in con- sidering this book for course adoption, click the “Exam Copy” button and fill in the re- quested information. Also available as an ebook.

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Law, Economics, and National Security of History’s Largest, Longest Free Trade AgreementTPP OBJECTIVELY

Raj BhalaAssociate Dean for International and Comparative LawRice Distinguished ProfessorUniversity of Kansas School of Law

International Legal ConsultantThe Al Ammari Law Firm, Bahrain and Saudi ArabiaIn Association with Blake, Cassels & Graydon LLP, Canada

TPP ObjectivelyForthcoming October 2016 • ISBN 978-1-61163-959-9Here, at last, is the first comprehensive, objective analysis of the legal, economic, and na-tional security aspects of the Trans Pacific Partnership (TPP). TPP Objectively is about thelargest, longest free trade agreement (FTA) in human history.

In careful, thoughtful prose, this 600-page book covers the most important controver-sies of the 6,000-page FTA, including sensitive agricultural and industrial sectors, services,intellectual property, currency manipulation, investor state dispute settlement, and laborand environmental rights. TPP Objectively is innovative, being the first to highlight theimportance of women's and LGBTQ rights in the context of FTAs. The book also coversthe history of TPP negotiations, from inception to conclusion, and reviews the relevanteconomic and national security theories, including free trade and containment, showinghow they apply to specific provisions in TPP.

In a world in which the debate about TPP, and international trade generally, is highly po-larized, TPP Objectively is an essential resource because it is a balanced presentation. Theauthor, renowned for his International Trade Law and Understanding Islamic Law (Sharī‘a)textbooks, spent several years studying all sides of the controversial issues, and con-ducted first-hand research in 11 of the 12 TPP countries, and several non-TPP countries (in-cluding India, Indonesia, and Korea). The text is thoroughly referenced, with hundreds ofcitations to different sources from around the world to help readers get a clear, well-rounded understanding of TPP.

TPP Objectively is not only for specialty audiences, such as scholars, teachers, and stu-dents in international trade, international economics, and international relations, but alsofor general readers interested in international law and policy, including legislators andtheir staffs and other decision-makers engaged in international trade agreements.

How to Order / Request an Examination CopyTo order, please visit this book’s page at caplaw.com/TPP. If you are interested in con-sidering this book for course adoption, click the “Exam Copy” button and fill in the re-quested information. Also available as an ebook.

SUMMARY TABLE OF CONTENTS

DedicationTable of AbbreviationsPreface: Shakespeare and TPPAcknowledgementsStyle Conventions

Introduction: ThesisA. Overall Grade: BB. Partial Economic SuccessC. Partial Economic FailureD. National Security Containment of ChinaE. National Security Pivot Out of Middle EastF. Perilous ModelingG. Mercantilist Overselling

Chapter I: Transparency

Chapter II: ConceptsA. Managed TradeB. OligarchyC. PlutocracyD. National Security

Chapter III: Goals and OutcomesA. Key Negotiating ObjectivesB. 5 HallmarksC. Summary Tables on TPP Provisions

Chapter IV: MembershipA. Origins and Membership ExpansionB. Price of Canadian and Mexican EntryC. Controversial Japanese EntryD. Enter Korea?E. Why Not India?F. Why Not Taiwan?G. Why Not Indonesia?

Chapter V: LogicA. Negotiating RoundsB. Cross-Border RationalesC. 4 American MotivationsD. Problem of American Trade Negotiating AuthorityE. 4 Ways to Contain ChinaF. Too Late for Hostile Regionalism?G. Asymmetric American Bargaining Power

Chapter VI: Traditional Agricultural Market AccessA. Demography-Based Arguments for Managing TradeB. Sacred Sensitivities: Sugar, Dairy, Beef, Pork, Rice, and WheatC. Horticultural Products and Farm Subsidies

Chapter VII: Traditional Industrial Market AccessA. Managed Trade AgainB. T&A and ROOsC. FootwearD. Autos, Auto Parts, and ROOsE. Bilateral Side Letters on Autos and Auto Parts

Chapter VIII:Non-Traditional Market AccessA. Services and InvestmentB. Probative Empirical EvidenceC. Preferences and Government ProcurementD. Definition, Coverage, and Culture with SOEsE. Data Flows and PrivacyF. China and Spam

Chapter IX: Copyright BattlesA. OverviewB. LengthC. Fair UseD. Online Piracy, Orphan Works, and Criminal PenaltiesE. Digital LocksF. Trade Secrets and Criminal LiabilityG. GIs and TBTs

Chapter X: Patent BattlesA. 3rd Party Pre-Grant Patent OppositionB. Patentability and ExceptionsC. Patent ExtensionD. Pharmaceutical Protection PeriodE. Nullification and Anti-Patent Trolling RulesF. Biologics and Data ExclusivityG. March 2014 UNITAID Critique of American TRIPs

Plus Proposals

Chapter XI: FX BattlesA. Conventional Exclusion of Currency Manipulation RulesB. Inclusion or Not?C. November 2015 Joint Declaration PuntD. Pitchforks, Horses, and BarnsE. Capital Controls

Chapter XII: Red Tape and Behind the Border BarriersA. Trade Facilitation and Trans-shipmentB. Regulatory Coherence

Chapter XIII: ISDSA. BackgroundB. Favoring the Plutocracy?C. Limiting Subject Matter JurisdictionD. Tobacco Carve Out?E. MFN Rule Problem

Chapter XIV:People and Their ClimateA. Labor RightsB. Human TraffickingC. Environmental Protection

Chapter XV: PrognosisA. Relationship to Existing FTAsB. 3 Big Poblems, Dysfunctional Syllogistic Logic,

and Social Justice

Annex: Tables on TPP Structure, Length, Reservations, and Side Letters

Table A-1: 30 ChaptersTable A-2: Annex I Investment and Services NCMs(Party-Specific Schedules)Table A-3: Annex II Investment and Services NCMs(Party-Specific Schedules)Table A-4: Annex III Financial Services NCMs(Party-Specific Schedules)Table A-5: Annex IV SOEs(Party-Specific Schedules)Table A-6: Related Instruments(Side Letters)Table A-7: United States - Japan Bilateral OutcomesTable A-8: Summary Statistics

IndexAbout the Author

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