First steps for Trans-Pacific Partnership, or Obama’s ‘Anything but China’ trade pact
Twelve Pacific Rim nations representing 40 per cent of the global economy on Thursday signed a giant trade deal seen by many as a move to keep China’s economic might in check
The Trans-Pacific Partnership was signed by 12 member nations on Thursday in New Zealand, but the massive trade pact that covers 40 per cent of the world economy will still require years of tough negotiations. Here is the background:
What is the TPP?
The Trans-Pacific Partnership Agreement, one of the world’s biggest high-level trade and investment deals, covers 12 countries – the United States, Japan, Australia, Canada, New Zealand, Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam, which together account for 40 per cent of the global economy.
Negotiations heated up in 2010 after the pact was endorsed by US President Barack Obama. The TPP talks have excluded China, reflecting what analysts say is Washington’s concern over China’s rising power. The deal is also seen as a major move by Obama to cement US trade dominance as part of his Asia-Pacific rebalancing strategy.
On October 5, the US and 11 other countries concluded the deal that will cover investment, services,
e-commerce, government procurement, intellectual property, state firms, labour and the environment.
Twelve countries signed the TPP agreement in New Zealand on Thursday.