What is TPP? – The TPP or Trans-Pacific Partnership came onto the scene in the past decade and is a multilateral free-trade arrangement between countries in the Pacific region. Although it has been discussed at Asia-Pacific Economic Cooperation (APEC) summits, and all member countries are APEC members, it is not an APEC initiative.
Japan’s protection of its rice industry is
one stumbling block in its plans to join TPP
Photo: Ernst Haas
Who is involved? – The four founding nations were Singapore, Chile, New Zealand and Brunei. There are now nine members — and growing: Singapore, Chile, New Zealand, Brunei, United States, Australia, Peru, Malaysia and Vietnam. The United States is obviously the largest member and its participation counters China’s growing weight in the region. At the 2011 APEC Summit held recently in Hawaii, Canada, Mexico and Japan said they wanted to join. Korea and Taiwan are also considering joining, while China says it is waiting for an invitation to join.
How does a country join the TPP? Although the larger the group the better in terms of economic clout, membership is selective. To be eligible to join, all current members must decide by consensus on whether the new member should be admitted. Canada’s and Japan’s application for membership may depend on how they finesse stumbling blocks such as agricultural subsidies and barriers.
Is the TPP different from other free-trade agreements? It covers the usual ground such as eliminating tariffs and reducing red tape, but this one also addresses new issues such as making members’ regulatory systems more compatible for seamless trade from one nation to the next, and focusing on small and medium-sized businesses. It also addresses unfair competition with state-owned enterprises and intellectual property in the digital age.
What’s next? The nine members are still negotiating the details of what the partnership will cover. They have agreed to meet in December – to arrange further negotiations.
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