The Trans-Pacific Partnership (TTP) is known to be the first “self styled” 21st century trading agreement” (Financial Times, 2013). The twelve-member club comprises of The US, Peru, Canada, Chile, Mexico, Australia, Brunei, Japan, Singapore, Malaysia, Vietnam and New Zealand. Its aim is to “deepen trade by addressing matters like government procurement, intellectual property protection and the conduct of state owned enterprises. It is also meant to update trade agreements including post-WTO developments like e-commerce and cloud commuting.” (Financial Times, 2013)
It will remove tariffs and standardize business practices between the United States and 11 other trading partners that border the Pacific Ocean. Collectively they account for almost a third of global trade and about 40% of global gross domestic product. Current trade totals is estimated nearly $2 trillion in goods and $242 billion in services (Amadeo K., 2016) The Bush Administration articulated a trade policy strategy known as “Competitive Liberalization”. (Sbargia, 2010). This idea of competitive liberalization corresponds with Richard Baldwin’s Domino Theory of Regionalism whereby an “idiosyncratic shock” such as deeper integration of an existing regional bloc can trigger membership requests from non-member countries. He further explains that the close amalgamation of a bloc is detrimental to the profits of non-members, this stimulates non member countries to become apart of the regional bloc. (Baldwin, 1993) Some analysts call TTP as a “tipping-point approach” through which a covey of trade pioneers oblige other countries to join. Since TTP talks have gained pace South Korea, Indonesia and Thailand have shown some interest. (Financial Times, 2013) It has been claimed that trade expands faster under planned bilateral free trade agreements. (Bergsten,2006). Enacting measures like the TPP will stimulate the creation of high paying jobs and contribute to stronger economic growth throughout the world. (Walsh et al., 2016). It has led to trade creation between the member countries with an annual global income gain of $295 billion. (Sqwang,2014). TPP will generate new opportunities for the U.S exporters in areas where trade barriers remain high, such as agriculture, services etc. Additionally, the incorporation of the U.S businesses into global supply chains means that access to lower-cost imports will increase the competitiveness of U.S businesses domestically and in overseas markets. (Meltzer, 2015) The TPP contains new guidelines that aid the digital economy, such as commitment to cross border data flows and to not need data localization. The internet and the ability to transfer data globally is generating enormous opportunities for organisations to participate in international trade. Moreover, it is enabling developing countries to engage in the global economy that was not possible earlier. (Meltzer,2012) Japan has benefited by joining the TPP, the country’s economic growth will increase by almost four times to $115 billion. (Bennett, 2016). Studies show that developing countries like India stand to gain by joining the bilateral agreement as it can boost its exports by $500 billion every year. (Bennett, 2004). This trade agreement benefits all parties. In fact, the countries that will largely benefit are developing countries with high levels of protection such as Japan and Vietnam – reflecting …show more content…
In 2010, two-thirds of Asian Pacific countries had a growth rate above the world average 5.1%. Developed counties like the U.S, Australia trade with developing economies like Vietnam, Peru etc as a result the volume of trade between them will increase significantly with further trade liberalisation. Thus, developing countries’ engagement will not only increase U.S stakes in the deal but also trigger more interests among Asian-Pacific countries to participate in the TPP negotiations. (Li, …show more content…
(Padmanabhan, 2015). Trade between the two blocs amounts to E1 trillion a year, the TTIP deal will cover 45% of the global GDP. (New Scientist, 2014)
The term ‘competitive imperialism’ applies where ‘free trade is subservient to the goal of projecting influence to another country or throughout a region, and checking actual or perceived reciprocal efforts by another power’. Last decade, it was used to illustrate the competition between the US and the EU as they competed to secure free trade agreements (FTAs) for strategic reasons (Kelsey, 2013). TTIP is seen as another neo-liberal project that will accelerate a race to the bottom on environmental, health and social standards. (Dullien, Garcia and Janning,
It will remove tariffs and standardize business practices between the United States and 11 other trading partners that border the Pacific Ocean. Collectively they account for almost a third of global trade and about 40% of global gross domestic product. Current trade totals is estimated nearly $2 trillion in goods and $242 billion in services (Amadeo K., 2016) The Bush Administration articulated a trade policy strategy known as “Competitive Liberalization”. (Sbargia, 2010). This idea of competitive liberalization corresponds with Richard Baldwin’s Domino Theory of Regionalism whereby an “idiosyncratic shock” such as deeper integration of an existing regional bloc can trigger membership requests from non-member countries. He further explains that the close amalgamation of a bloc is detrimental to the profits of non-members, this stimulates non member countries to become apart of the regional bloc. (Baldwin, 1993) Some analysts call TTP as a “tipping-point approach” through which a covey of trade pioneers oblige other countries to join. Since TTP talks have gained pace South Korea, Indonesia and Thailand have shown some interest. (Financial Times, 2013) It has been claimed that trade expands faster under planned bilateral free trade agreements. (Bergsten,2006). Enacting measures like the TPP will stimulate the creation of high paying jobs and contribute to stronger economic growth throughout the world. (Walsh et al., 2016). It has led to trade creation between the member countries with an annual global income gain of $295 billion. (Sqwang,2014). TPP will generate new opportunities for the U.S exporters in areas where trade barriers remain high, such as agriculture, services etc. Additionally, the incorporation of the U.S businesses into global supply chains means that access to lower-cost imports will increase the competitiveness of U.S businesses domestically and in overseas markets. (Meltzer, 2015) The TPP contains new guidelines that aid the digital economy, such as commitment to cross border data flows and to not need data localization. The internet and the ability to transfer data globally is generating enormous opportunities for organisations to participate in international trade. Moreover, it is enabling developing countries to engage in the global economy that was not possible earlier. (Meltzer,2012) Japan has benefited by joining the TPP, the country’s economic growth will increase by almost four times to $115 billion. (Bennett, 2016). Studies show that developing countries like India stand to gain by joining the bilateral agreement as it can boost its exports by $500 billion every year. (Bennett, 2004). This trade agreement benefits all parties. In fact, the countries that will largely benefit are developing countries with high levels of protection such as Japan and Vietnam – reflecting …show more content…
In 2010, two-thirds of Asian Pacific countries had a growth rate above the world average 5.1%. Developed counties like the U.S, Australia trade with developing economies like Vietnam, Peru etc as a result the volume of trade between them will increase significantly with further trade liberalisation. Thus, developing countries’ engagement will not only increase U.S stakes in the deal but also trigger more interests among Asian-Pacific countries to participate in the TPP negotiations. (Li, …show more content…
(Padmanabhan, 2015). Trade between the two blocs amounts to E1 trillion a year, the TTIP deal will cover 45% of the global GDP. (New Scientist, 2014)
The term ‘competitive imperialism’ applies where ‘free trade is subservient to the goal of projecting influence to another country or throughout a region, and checking actual or perceived reciprocal efforts by another power’. Last decade, it was used to illustrate the competition between the US and the EU as they competed to secure free trade agreements (FTAs) for strategic reasons (Kelsey, 2013). TTIP is seen as another neo-liberal project that will accelerate a race to the bottom on environmental, health and social standards. (Dullien, Garcia and Janning,