TTP moves forward without the U.S.

                           
        

On March 8th, 2018, the eleven countries remaining in the Trans-Pacific Partnership met to sign a new trade agreement called The Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP. This new trade agreement is similar to the TPP, but without U.S. involvement it has been altered. It now excludes over twenty provisions that were added to accommodate the U.S. The new version also removes the condition that required final members to account for at least 85% of the combined GDP of the original signers. The scope of the deal has also changed, the original TTP deal covered 800 million people and 40% of the world's economic output. The remaining members of the CPTPP represent 500 million people, and 13% of world trade. The remaining members of the deal are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It will be interested to see how this trade affects the U.S., as President Donald Trump signed an order on the 8th that imposes tariffs on steel and aluminum products to counter the free trade impulse represented in the CPTPP. This move has sparked fears of a trade war.

https://www.npr.org/sections/thetwo-way/2018/03/08/591549744/the-tpp-is-dead-long-live-the-trans-pacific-trade-deal
https://www.reuters.com/article/us-trade-tpp/asia-pacific-nations-sign-sweeping-trade-deal-without-u-s-idUSKCN1GK0JM
https://i2.wp.com/noticieros.televisa.com/wp-content/uploads/2018/03/mexico-tendra-acceso-a-seis-nuevos-mercados-con-el-tratado-transpacifico.jpg?fit=594%2C354&quality=100

Benefits and risks of the TTP

In this post I thought it would be helpful to provide a bit more background on the TTP and some of the benefits and risks involved with it. The Trans Pacific Partnership removes tariffs on goods and services and sets reciprocal trade quotas. "TPP focused on a suite of reforms that include liberalizing protected sectors, streamlining customs and regulations, strengthening intellectual property protections, promoting competitive and transparent business laws, and enforcing labor and environmental standards." This agreement will open markets and address issues in the global economy.

Pros

It boots exports and economic growth. All countries involved agreed to cut down on wildlife trafficking. Countries that don't comply face trade penalties. China is not involved, which will allow the U.S. and other countries an upper hand in trade in Asia. U.S. involvement in the TTP was expected to have an increase in income due to lower prices on purchased goods from countries involved in the TTP.

Cons

The TTP protects patents and copyrights, and it will raise the price of generic drugs. The U.S. labor movements argue that trade agreements will make it easier for corporations to take their labor offshore. When President Trump left the TTP last year he argued that the agreement would have accelerated the movement of U.S. manufacturing jobs offshore. 

https://www.cfr.org/backgrounder/trans-pacific-partnership-and-us-trade-policy 

https://www.thebalance.com/what-is-the-trans-pacific-partnership-3305581 

https://www.investopedia.com/articles/forex/052915/capital-and-labor-who-wins-transpacific-partnership.asp