Representatives from the nine countries that comprise this new Trans-Pacific Partnership (TPP), which include the United States, Australia, New Zealand, Malaysia, Vietnam, Singapore, Brunei, Peru and Chile, met at the APEC summit to establish the terms of a free trade agreement. The formation of the TPP is considered a landmark, setting into place various innovative standards that will govern the future course of global trade.\u00a0 In sum, the TPP would provide comprehensive market access to its participants, and facilitate the development of more efficient production and supply chains among its members.<\/p>\n
Significantly, Japan \u2013 the world\u2019s third largest economy behind China and the United States \u2013 has also expressed interest in being part of the TPP.\u00a0 Membership in this new trade bloc is also open to any other country that wishes to contribute to the development of an Asia-Pacific free trade zone.\u00a0 Japan\u2019s desire to participate in the TPP has enlivened other countries that are already part of the trade agreement.\u00a0 U.S. Trade Representative Ron Kirk, for example, has stated that Japan\u2019s interest in being part of the TPP is evidence of a much greater, collective desire to achieve economic integration in the Pacific Rim.<\/p>\n
Members\u2019 voluntary elimination of existing trade barriers is one of the TPP\u2019s key characteristics. Canada, for example, has not yet become a TPP member, purportedly because the TPP signatories are concerned about its agricultural policy, specifically on dairy.\u00a0 Canada not only sets a quota for production of dairy, egg, and poultry by its farmers, but also protects its farmers with stiff import tariffs.\u00a0 Canada follows the \u201csupply management\u201d theory, which is wholly inconsistent with tariff elimination.<\/p>\n
New Zealand\u2019s Trade Minister, Tim Groser, has announced that applications of countries wishing to join the trade agreement will be strictly reviewed.\u00a0 Applicants must commit themselves to the complete elimination of import tariffs and other trade barriers.\u00a0 According to Representative Kirk, the U.S. government is committed to discussing the TPP\u2019s standards for liberalizing trade, as well as other topics of relevant concern, with Congress and domestic shareholders.\u00a0 Discussions will include protection of intellectual property rights, elimination of non-tariff trade barriers, and additional export opportunities for U.S. goods and services.<\/p>\n
The TPP agreement has five key features that will make it a true \u201ctwenty-first century trade agreement.\u201d\u00a0 First, the agreement seeks to eliminate tariffs and other barriers, which will create new opportunities for workers, business and end-consumers.\u00a0 Second, as a regional agreement, the TPP will enhance industrial productivity among its members, which will in turn generate jobs, raise living standards, and improve social welfare in TPP member states.\u00a0 Third, the TPP will promote regulatory coherence, competitiveness and business facilitation, comprehensive market liberalization, and improvements in trade and investment discipline among its member states.\u00a0 Fourth, the TPP agreement will promote innovate products and services related to the information and green technology economic sectors in the region.\u00a0 Finally, the TPP agreement will be flexible enough such that it can be updated, as appropriate, to address issues that are likely to emerge in the future.<\/p>\n
The TPP agreement promises to create jobs, stimulate economic growth, promote regional integration, and double exports among its members.\u00a0 Some critics view the TPP as a futile, misguided attempt to pressure China into further opening its markets.\u00a0 What effect this \u201cNAFTA of the Pacific\u201d may have on China, if any, remains to be seen.\u00a0 However, TPP member states are confident that the agreement will boost the economic competitiveness of its signatories in an increasingly hostile global economic climate.<\/p>\n","protected":false},"excerpt":{"rendered":"