NEWS

TPP member countries include the United States, Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

After five years of discussions, the 12 countries negotiating TPP announced on October 5 they had finalized a comprehensive international trade agreement. The United States Trade Representative (USTR) estimates that the deal will boost U.S. exports by up to $142 billion, growing U.S. income by $89 billion, and increase foreign direct investment in American firms by $54 billion.

The Trans-Pacific Partnership will reduce or eliminate thousands of tariffs and other barriers for American businesses both large and small entering new markets. USTR predicts that it will increase exports by 4.4 percent, increase GDP by $77 billion, and boost foreign direct investment in U.S. businesses. TPP also contains provisions that protect businesses’ intellectual property rights abroad and enforceable labour and environmental standards. The new agreement will allow the U.S. and other member countries to set the standards for commerce in the Pacific Rim ahead of China, which has also been negotiating new trade agreements with its neighbours in East Asia.

The agreement is broad: negotiators crafted 30 different chapters to resolve issues such as market access, intellectual property rights, labour standards, state-owned enterprises, and regulatory compatibility. TPP is intended to be a “living agreement” that can accommodate both new trade issues and new members. Allowing other countries, including China and India, to join in the future gives the agreement the potential to expand in a region that produces nearly 60 percent of global GDP and is home to 40 percent of the world’s population.