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.

Latest News

• 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).