Trans-Pacific Partnership Trade Agreement Pros And Cons

China has agreed to join the CPTPP. As the world`s largest economy, China would quadruple the economic benefits of the agreement. The CPTPP allows Mexico to have free trade agreements with six other Asia-Pacific nations, including Australia, Brunei Darussalam, Malaysia, New Zealand, Singapore and Vietnam. Opening the CPTP process to visiting potential new candidates could also allow Mexico to tap into new trade and investment relationships with other Asian countries and neighbours in Latin America. In 2017, the estimated commercial value of all countries was $1 trillion. It would have been smaller than the TTIP. This is the other major regional trade agreement being negotiated. It is between the United States and the European Union. The talks were shaken when Trump took office.

Just one day after U.S. President Donald Trump abandoned the Trans-Pacific Partnership (TPP) on January 24, I happened to be in a trade discussion in Singapore. In a policy speech, a former senior U.S. negotiator, who is said to be close to Mr. Trump, stressed that the new government was in the presence of “smart trade” and explained that the TPP was between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. The countries involved produced 40% of the world`s gross domestic PRODUCT of $107.5 billion. They provided 26% of world trade and 793 million global consumers. Unlike most agreements, the CPTPP eliminates non-tariff trading blocs. In addition, rules and statutes will be harmonized. It shares these characteristics with the Transatlantic Trade and Investment Partnership.

Australia already has strong ties to the CPTP contracting parties and has bilateral free trade agreements with Chile, Japan, Malaysia, New Zealand and Singapore, as well as a multilateral agreement with the Association of Southeast Asian Nations (ASEAN), which includes Brunei Darussalam and Vietnam. A contract with Peru was signed in February 2018 but is not yet in force. However, the continued liberalization of trade between existing free trade partners and the prospect of improved market access to Canada and Mexico are important. “It would be a mistake to believe that there will be a complete break with the past. None of the Trump administration appointees suggested that the United States would throw its trade relations overboard. Support for the continuity of U.S. trade policy is also the perspective of Republican leaders in Congress. You are convinced of the benefits of an international trading system based on rules…

Like President Trump, many members of Congress are looking for a better deal. In particular, the TPP excluded China. It was intentional. It is expected to offset China and India`s trade dominance in East Asia. The TPP has reportedly apologised to the United States for intervening in trade disputes in the oil-rich South China Sea. China has strengthened its army to support its abuses in the region. 7. It would improve access to technology across the region. The TPP has provided companies of all sizes in participating countries with access to the latest technologies from the many relationships or investments that have become available under this agreement. These regulations have added a micro-economy that could prosper domesticly, because there would be access to a global market for everyone. However, this signal does not lessen the sense of unease and injustice among U.S. trading partners, as it was the United States that was the main initiators of the WTO agreement and other free trade agreements.