Importance Of Trans-Pacific Partnership

The Trans-pacific Partnership is a trade agreement between 12 countries, the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru. The purpose of the Trans Pacific Partnership is to deepen economic ties between these nations by reducing tariffs and promote the development of trade. The increase in trade between these nations is aimed at reducing China and India’s dominance it the Pacific Rim.
The Trans-Pacific Partnership was not a United States conceived treaty and initially the United States was not even a part of it. The origins of the treaty began in 2002 at the Asia-Pacific Economic Cooperation (APEC) forum when New Zealand, Chile and Singapore, known as the Pacific Three
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That represents roughly forty percent of the global gross domestic product and one-third of all of the world’s trade. ("Trans-Pacific Partnership: Summary Of U.S. Objectives")
The partnership has five key elements designed to increase trade between the nations. The first key element is comprehensive market access. The partnership aims to reduce or eliminate tariffs for all trade in goods and services as well as eliminate barriers for investment opportunities in the participating countries.
The second element of the agreement is that it facilitates the development of production and supply chains. This part of the agreement specifies that when available supplies for production should come from participating partnership countries. This means that in the textiles industry, since China is not a member of the agreement, that China will not be the supplier of materials for the Malaysian clothing industry. The goal is to support member nations by creating and supporting jobs, raising living standards, enhancing conservation efforts, and facilitating cross-border integration, as well as opening domestic
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President-Elect Trump is correct in his statement that it is “a potential disaster for our country,” but without quickly establishing negotiations to fix or replace the Trans-Pacific Partnership Agreement, China is in a position of dominance. Asserting of dominance in the region is the goal of China in the negotiations of the RCEP. Without a establishing partnerships to counter China in the region it allows them to make the rules to the game of trade in Asia. Trade dominance of Asia by China would be a disaster for the United States that would have no meaningful means of negotiation. The result would be an economic disaster for the United States. The United States must negotiate a trade pact or make agreements with individual nations in order to stay relevant in the world

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