Trans-Pacific Partnership (TPP)
Wikipedia (en)
The Trans-Pacific Partnership (TPP), or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is a trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (until 23 January 2017) and Vietnam. A final agreement was drafted on 5 October 2015, made public on 5 November 2015, and signed on 4 February 2016 in Auckland, New Zealand, concluding seven years of negotiations. It is the largest regional trade agreement in history.
The TPP began as an expansion of the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) signed by Brunei Darussalam, Chile, New Zealand, and Singapore in 2005. Beginning in 2008, additional countries joined the discussion for a broader agreement: Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam, bringing the total number of countries participating in the negotiations to twelve. Current trade agreements between participating countries, such as the North American Free Trade Agreement, will be reduced to those provisions that do not conflict with the TPP or provide greater trade liberalization than the TPP. The Obama administration considered the TPP a companion agreement to the proposed Transatlantic Trade and Investment Partnership (TTIP), a broadly similar agreement between the U.S. and the European Union.
According to the Obama Administration, the agreement aimed to "promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty in the signatories' countries; and promote transparency, good governance, and enhanced labor and environmental protections." The TPP contains measures to lower both non-tariff and tariff barriers to trade, and establish an investor-state dispute settlement (ISDS) mechanism. On 21 November 2016, U.S. president-elect Donald Trump announced that he planned to withdraw the United States from the TPP after he took office; on 23 January 2017, President Trump signed a presidential memorandum to withdraw. The other 11 TPP countries agreed in May 2017 to revive the deal without US participation.
The U.S. International Trade Commission, the Peterson Institute for International Economics, the World Bank and the Office of the Chief Economist at Global Affairs Canada found that the final agreement would, if ratified, lead to net positive economic outcomes for all signatories, while a heterodox analysis by two Tufts University economists found that the agreement would adversely affect the signatories. Many observers have argued that the trade deal would have served a geopolitical purpose, namely to reduce the signatories' dependence on Chinese trade and bring the signatories closer to the United States.