All 12 Pacific Rim countries have signed Trans-Pacific Partnership (TPP) agreement in Auckland, New Zealand making it one of the biggest trade deals in history.
These 12 countries are: Singapore, Malaysia, Vietnam, Brunei Darussalam, Japan, Canada, United States, Mexico, Peru, Chile, Australia and New Zealand.
TPP is Free Trade Area and these member countries across the Pacific Rim are home to 800 million people and account for 40% of global trade.
About Trans-Pacific Partnership (TPP) Agreement
- Objectives of TPP: (i) Lower trade barriers such as tariffs. (ii) Establish a common framework for intellectual property (iii) Enforce standards for labour law and environmental law (iv) Establish an investor-state dispute settlement mechanism.
- The agreement aims to liberalize trade in nearly all goods and services by eliminating tariff and non-tariff barriers.
- This will lead to creation of a unified market like in European Union which will help different countries in different manner.
- Platform for regional integration: It seeks to serve as a common platform for regional economic integration.
- Inclusive trade: It seeks to create favourable inclusive trade environment so that every member can benefit from trade.
- Addressing new trade challenges: It seeks to promote innovation, competitiveness and productivity by addressing new issues in global trade such as of intellectual property rights, digital economy, ecommerce etc.
- Comprehensive market access: It involves reduction or complete elimination of tariff and non-tariff barriers in a list of goods, services and investments.
- Regional approach to commitments: Facilities seamless integration of economies of members facilitating; opening markets, cross border trade and development of production and supply chains.
The Trans-Pacific Partnership (TPP) Agreement is considered as US-led initiative, part of its so-called “Asia Pivot” or Rebalance doctrine to rebalance its relationships vis-à-vis Asian state actors and a restructuring of priorities for its foreign policy establishment.