The long-awaited trade called the Trans-Pacific Partnership (TPP) has been released to the public for the first time. It needs to be translated into the language of the signatories and ratified by the lawmakers in each country. However, its ratification will not take as long as its negotiations, and it is expected to occur in the next few months.
The Trans-Pacific Partnership is an agreement that have been negotiated for more than 5 years by 12 countries on the Pacific including the U.S., Vietnam, Singapore, Australia, New Zealand, Mexico, Chile, Malaysia, Peru, Canada, Brunei, and Japan. This is a huge deal since the countries involve in this partnership account for the 40% of the total economy world trade.
Those who are in favor of this agreement claim that it will bring jobs and boost economic growth in countries on the treaty. Their goal is to increase trade between them by eliminating or reducing the tariffs of some goods and services, promote innovation, and create a single market similar to the Europe market but on the Asian-Pacific region. It will improve standards within the member countries such as environmental protection, workers’ rights, and regulatory coherence. The global benefits are expected to be an income of $295 billion annually. However, this negotiation can negatively affect China’s annual income reducing it by 35 billions, but it will have evident benefits to Japan since it will solidify its alliance with the U.S (boosting its GDP by 2%) and to Vietnam due to the potential for a greater share of the apparel and footwear market, particularly in the US and Japan.
On the other hand, opponents to this trade argued that it benefits corporations but it negatively affects U.S workers and the environment. They fear that the jobs will move from the U.S to developing countries as the fear to its extreme secrecy that have been regarding the negotiations.
The truth is that the TPP deal has pros and cons depending on the industry and economic sector. For instance, it is expected that with the tax cut, Japanese carmakers and US farmers will benefit, but US local job markets and less developed countries’ jobs will be affected as well as local telecom firms will face more competition.
Source: BBC News (http://www.bbc.com/news/business-34742074)