Trans Pacific Partnership - Seeker's Thoughts

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Trans Pacific Partnership

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Trans-Pacific Partnership

The Trans-Pacific Partnership (TPP), or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), was a trade agreement  between USA and other 11 countries like  Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. However USA denied being part of it after Donald trump was elected as president.

 AGREEMENT
  The agreement, originally signed on 4 February 2016, and the negotiations were successfully concluded on October 4 , 2015 . Each nation’s legislature had to approve the agreement before it went in to effect. Before it could not happen, Trump’s Executive order removed the United States from the process.

TPP TRADE AREA
The countries involved production of 40 percent of the world’s total gross domestic product worth 107$ Trillion. They supply 26 percent of global trade and 793 millions of the world’s consumers. The TPP trade area is bigger than the North American free trade agreement, currently the world’s largest. The TPP is the other large regional trade agreement being negotiated. 

NOTABLY – The TPP excludes china.
It’s meant to balance the trade dominance of both china and India in East Asia. 
China has been beefing up its military to back its incursions in that area. But all parties have signaled that other member can join in the future so far, the Philippines and china and have indicated an interest.

UNDERSTANDING FREE TRADE
Now the other 11 countries are forging ahead , even without the participation of the world’s largest economy. The TPP is their true economic benefit.
However, Trade deal aren’t meant to be about raising a country’s overall productivity and prosperity and with free trade, foreign competition dislodges local suppliers and employment in certain industries falls.
They allow less efficient homegrown companies to hire more and produce more.

ASIA CAN MAKE TPP WORK WITHOUT THE U.S
The TPP , effects will certainly be much smaller .but the productivity  effect of new markets remain attractive. All 11 countries may get benefits with TPP ,they can  collaborate with each other and  they would get access to new marlets for its own product..