Advantages Of The Trans Pacific Partnership Essay
This report provides an evaluation of advantages and disadvantages of the Trans Pacific Partnership (TPP) and analyzes what impact it has on Magna, global automotive supplier headquartered in Ontario, Canada.
Magna through the TPP, a quite controversial agreement, that can harm some industries in Canada, will get a lot of benefits. The company is present in automotive sector, which is an export-based industry (85%). The TPP will increase its presence at previously closed Asia markets that are growing fast today. The new rule of origin will encourage manufacturers from TPP states to use components and parts produced by Magna when they are producing goods that they export to other TPP countries. The pact will expand Magna’s business in Japan, Malaysia, and Vietnam, which are the markets where Canada faces high tariffs and no prior preferential access. Magna will get a great advantage over the non-TPP countries in the Trans-Pacific markets. The TPP will benefit the company by increasing its volume and creating opportunities as for an exporter to expand its business and upgrade the GDP of the country. Magna will also get an access to countries with cheaper labour and it can develop its manufacturing facilities in places that will cost less. Thus, the TPP provides Magna with a lot of opportunities and benefits.
Table of contents
Introduction __________________________________________________________ 3