Does everyone benefit from free trade?

Here is an article that discusses why some people oppose an agreement to make trade more free.

Auto-Parts Dispute Taps the Brakes on Pacific Trade Deal 
by: William Mauldin and Dudley Althaus
Sep 04, 2015
Click here to view the full article on WSJ.com

TOPICS: International Trade

SUMMARY: A fight over how cars are assembled is pitting North America's auto industry against Japan's in a dispute now holding up a major trade agreement spanning the Pacific.

CLASSROOM APPLICATION: Students can examine the issue of the percentage of auto components produced within the TPP trading bloc on whether the autos are freely traded within the bloc. Two interesting issues are the percentage cutoffs set by member countries, in particular Japan, Mexico, and the U.S. Students can examine the preferences of these countries and the tradeoffs of changing this percentage within the U.S. in particular. "Detroit auto makers in general prefer rules of origin somewhere in the middle, because strict rules could crimp their reliance on global supply chains, while lax rules open Detroit up to increased competition from Asia, said an executive at one U.S. auto maker. But labor groups that represent a swath of the industry, including auto-parts workers, want tight rules to prevent the bulk of auto components from being produced in countries, including China, that aren't preparing to sign on to the labor and environmental standards of the TPP."

QUESTIONS: 
1. (Introductory) What is the tradeoff within the U.S. of increasing the percentage of auto components produced within the TPP trading bloc on whether the autos are freely traded within the bloc?

2. (Advanced) Why are U.S. labor unions pushing to reduce this maximum percentage? Why is Japan pushing to increase this maximum percentage?

3. (Advanced) What is a major concern of Canada and Mexico in setting this maximum percentage?

Reviewed By: James Dearden, Lehigh University