Economics Trade Agreements Questions Medium
The Trans-Pacific Partnership (TPP) is a trade agreement that was negotiated between 12 countries bordering the Pacific Ocean. It aimed to establish a comprehensive economic partnership by reducing trade barriers and promoting economic integration among member countries. The TPP was signed in 2016 but has not been fully implemented as of now.
The agreement covered various aspects of trade, including tariffs, intellectual property rights, labor and environmental standards, and investment rules. It aimed to create a level playing field for businesses and enhance market access for goods and services. Additionally, the TPP included provisions to address emerging issues such as digital trade and state-owned enterprises.
The participating countries in the TPP included the United States, Japan, Australia, Canada, Mexico, New Zealand, Singapore, Malaysia, Vietnam, Peru, Chile, and Brunei. Together, these countries accounted for around 40% of the global economy.
Supporters of the TPP argued that it would boost economic growth, create jobs, and enhance competitiveness among member countries. They believed that the agreement would facilitate trade by reducing tariffs and harmonizing regulations, leading to increased market opportunities for businesses.
However, the TPP also faced criticism and opposition. Some argued that it would lead to job losses in certain industries, particularly in manufacturing, as companies might relocate production to countries with lower labor costs. Concerns were also raised about the potential impact on environmental and labor standards, as well as the influence of multinational corporations on domestic regulations.
Ultimately, the fate of the TPP was uncertain, as the United States, under the new administration, withdrew from the agreement in 2017. However, the remaining 11 countries continued negotiations and signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, which is a revised version of the original TPP.