Trans-Pacific Partnership (TPP) Agreement

Trance Pacific Partenership

Question: Recently TPP (Trans Pacific Partnership) was in news. It is a-

(a) Regional trade agreement.

(b) Navigational agreement.

(c) Defense Agreement.

(d) Environment protection agreement.

Ans: a

Related Facts:

  • Trans Pacific Partnership which is recently agreed between 12 Pacific Rim nations is the largest regional trade accord in history.
  • These 12 countries are: Japan, Singapore, Vietnam, Brunei and Malaysia from Asia. U.S.A, Canada and Mexico from North America. Chile and Peru from South America. Australia and New Zealand from Australia.
  • The final agreement was signed after five days of talks in Atlanta, US which was under negotiation for five years and was delayed repeatedly by negotiations over drug patents. It should be noted that China being world’s second-largest economy has been not part of the agreement.
  • The Pacific accord would phase out thousands of import tariffs as well as other barriers to international trade.
  • Participating nations contribute 800 million in population and almost 40 per cent of the world’s GDP.
  • Sets minimum standards on various global issues ranging from environmental protection and Workers Right.
  • TPP was started by four countries in year 2006 these are Singapore, Brunei, New Zealand and Chile.
  • Besides member country 6 other country shown their interest to join this partnership these are Colombia, Philippines, Thailand, Indonesia, Taiwan and South Korea.
  • Member countries are required to ratify the agreement by the legislature.
  • There is provision for a dispute settlement tribunal.

It’s Advantages:

  • It seeks to eliminate or reduce about 18,000 tariff and non-tariff barriers.
  • By the introduction of this agreement, a common trading standards will apply in countries, there will be equality at workers’ rights and it will control animals and their organ trafficking.
  • From TPP Japan is likely to get economical benefits and U.S is likely to get benefit strategically.
  • Other Member countries such as New Zealand Milk Products, Vietnamese textile, American Pharmaceutical, Japanese automobile etc will get new markets.

Point of disagreement:

  • The period over patent rights on drugs manufacturer is a major controversy. On the one hand the United States in favor of 12 years patent rights on the other hand, Australia, New Zealand etc. countries are advocating it to 5 years. The agreement is expected between 5-8 years.

Criticism:

  • The TPP is being criticized about the privacy of its provisions.
  • It has also been criticized on the grounds that it is an agreement
  • Major point of criticism is that there will be insignificant increase in that will benefit only major companies. Competition for labour forces among members countries. This is likely to affect employment of U.S.A.

Reference:

http://tppinfo.org/
https://en.wikipedia.org/wiki/Trans-Pacific_Partnership
https://www.eff.org/issues/tpp
https://ustr.gov/tpp/