Gallagher: TPP Means Bailout Future
Kevin Gallagher, associate professor of Global Development Policy at the Frederick S. Pardee School of Global Studies at Boston University, said that the Trans-Pacific Partnership (TPP) could mean a future where governments bail out foreign financial firms.
Gallagher made the argument in Morning Consult, a news service catering to the financial industry, in a Feb. 17 article entitled “Financial Vulnerabilities of the New Trade Pact Questioned.”
In the article, Gallagher said:
“One of the core things of the treaty is national treatment, which means I can’t treat my firms any different from your firms,” Kevin Gallagher, a professor of global development policy at Boston University, said last week in an interview. “When you translate it into finance, when you have too-big-to-fail, then you not only have to bail out the domestic firms, you have to bail out all of the foreign firms as well.”
He said that possibility has raised eyebrows among some of the lawmakers he’s spoken with in Washington.
You can read the full article here.
Gallagher is an associate professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he co-directs the Global Economic Governance Initiative and the Global Development Policy Program. He is the author of Ruling Capital: Emerging Markets and the Reregulation of Cross-Border Finance.
He is the co-chair of the Task Force on Regulating Capital Flows and has served as an advisor to the Department of State and the Environmental Protection Agency in the United States. as well as to the United Nations Conference on Trade and Development. Gallagher is co-editor of the Review of International Political Economy and writes regular columns in the Financial Times and the Guardian.