Essay on The Trans Pacific Partnership ( Ttp )

1895 Words Mar 7th, 2016 8 Pages
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)…

Related Documents