Herb Gerson, co-managing partner and leader of FordHarrison's global legal services team, was quoted in the Law360 article, "TPP Could Raise Overseas Labor Costs For US Employers," on the newly released text of the 12-nation Trans-Pacific Partnership agreement.
"For employers doing business in the nations party to the agreement, the short-term impacts aren't clear, according to Gerson.
For one thing, the Obama administration can't ink the deal for another 90 days, while Congress holds hearings on implementation of the bill. There's also the lag time for compliance in the other nations, he said.
But once a company's operations and suppliers do end up falling under the rules' auspices, the costs of doing business in some countries will likely rise in the long run, Gerson said. Meanwhile, compliance costs in the U.S. will probably remain unaffected. The U.S.' regulatory regime, including the Fair Labor Standards Act and the National Labor Relations Act, ensure that bar is already high and in line with the TPP's rules, he said."
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