Trans-Pacific Partnership (TPP)

The Trans-Pacific Partnership (TPP) is a trade agreement between countries bordering the Pacific Ocean, aimed at promoting economic growth, jobs, and innovation by reducing trade barriers and increasing exports.
According to the World Trade Organization (WTO), the TPP is a “comprehensive and high-standard regional trade agreement” that aims to “promote economic integration, stimulate economic growth, and enhance trade and investment among the parties.”
The TPP was signed in 2016 by 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.
The agreement covers a wide range of areas, including:
- Trade in goods and services
- Investment
- Intellectual property
- Labor and environmental standards
- Dispute resolution
The TPP aims to:
- Eliminate tariffs and other trade barriers
- Simplify customs procedures
- Enhance transparency and cooperation among member countries
- Promote economic development and competitiveness.
However, the agreement could not come into effect as all the 12 nations needed to ratify it.
The only country to have ratified the pact was Japan.
The United States pulled out of the deal after Trump came to power.

Interesting Facts about Trans-Pacific Partnership (TPP)

The TPP represents around 40% of global GDP and 25% of international trade.
The agreement is designed to be a “living agreement,” with built-in mechanisms for updating and expanding its provisions.
The TPP has been seen as a key component of the United States’ strategic pivot to Asia, and a counterbalance to China’s growing economic influence in the region.

June 2024:
- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the successor to the original TPP, has come into effect for Malaysia, making it the ninth country to join the agreement. (Source: The Star).