Trans-Pacific Trade Partnership
What is the Trans-Pacific Trade Partnership?
The Trans-Pacific Trade Partnership (TPP), not to be confused with the Transatlantic Trade and Investment Partnership (TTIP), is a trade deal between 12 countries that border the Pacific Ocean: Australia, USA, Japan, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, where all of the countries send their resources to each other, the TPP represents roughly 40% of the world’s economic output. The partnership aimed to expand economic ties between all 12 countries, abolishing tariffs and fostering trade to boost growth. The 12 members had also hoped to uphold a closer relationship on economic policies and regulation.
What has happened in recent news related to the TPP?
All of the 12 nations needed to ratify it before it could come into full effect but as Donald Trump became president of the United States of America, one of his first actions was to cancel their involvement in the partnership, all the other countries in the partnership are either angry at Donald Trump or worried about the TPP’s existence without the US and how they’ll try to keep it instead of abolishing it, US participation was a major part for the partnership. It may be possible for the other members to create a smaller version of the partnership in its place, but it’ll be very difficult.
Before Trump’s Presidency:
Former President Barrack Obama treated this specific partnership as a priority, and this particular deal would have strengthened America’s position in the Asia-Pacific region, where China is growing larger and larger in influence. US opponents (Republicans, etc.) have characterised the TPP as a secret deal that favours big business and other countries at the expense of American jobs and national sovereignty, Donald Trump called it a “horrible deal” as his entire campaign was about creating American jobs and “Making America Great Again”, but it wasn’t just Trump who opposed the deal, many other critics also said it had cost US jobs and said the TPP would create a way for companies to sue governments that change policy on such things like health and education to favour state-provided services, and it was also examined as intensifying competition between countries’ labour forces.
How Big was the TPP?
The TPP was extremely big, the 12 countries involved have a collective population of around 800 million – almost double that of the European Union’s single market. The 12-nation trade partnership is already responsible for 40% of world trade. The deal was seen as a remarkable achievement given the very different approaches and standards...