Trade deals are vigorously pursued by countries for the simple reason that they help boost trade by doing away with restrictive policies, through liberalization of policies and demolition of barriers. Sometimes it takes years of negotiations for an agreement to become a reality and talks go through multiple hurdles. The bigger the number of countries involved in the deal, the more protracted and tough the negotiations. In that sense, the 12-nation Trans-Pacific Partnership (TPP) is one of the most ambitious trade deals of our times. It is called the world’s largest free-trade zone “made for the 21st century”.
The deal is between the US and 11 Pacific Rim countries including Canada, Peru and Japan. The scope of the deal is huge because the countries involved account for 40 percent of the global economy. Labour, environment and other standards are likely to get a boost from the accord. Secondly, it is significant for the number of trade areas covered. The details of the agreement are not available, but according to reports already published, the TPP pact has some 30 chapters on issues from intellectual property protections to handling foreign investor disputes to enforcing labour rights, and a number of annex agreements on specific tariff cuts between specific countries.
Two days after 12 countries reached an agreement on the Trans-Pacific Partnership following grueling Atlanta negotiations, US President has begun pressing for its ratification by the Congress. The president has made the deal the centerpiece of his trade and foreign policies but at the same time is facing opposition from some quarters on account of some clauses in the deal and interestingly, the opposition also comes from Democratic presidential candidate Hillary Clinton. The agreement will also be discussed in detail in other countries. But this is a pact that must become a reality. Its benefits far outweigh its flaws, which can be sorted out later.
Clinton opposes the deal on the ground that she is worried about currency manipulation not being part of the agreement and that pharmaceutical companies may have gotten more benefits and patients fewer. Some Democrats and labour groups opposing the deal fear that the pact will cost manufacturing jobs and weaken environmental laws. But Obama is likely to succeed. “I’ve said repeatedly that I would only sign an agreement and present an agreement to Congress if I could be absolutely certain that it was good for American workers and good for American businesses, good for American farmers and good for American ranchers, and good for American manufacturers,” he said. US also hopes that the TPP pact would strengthen American influence with Asian nations at a time China is flexing its financial muscles.
Trade deals are vigorously pursued by countries for the simple reason that they help boost trade by doing away with restrictive policies, through liberalization of policies and demolition of barriers. Sometimes it takes years of negotiations for an agreement to become a reality and talks go through multiple hurdles. The bigger the number of countries involved in the deal, the more protracted and tough the negotiations. In that sense, the 12-nation Trans-Pacific Partnership (TPP) is one of the most ambitious trade deals of our times. It is called the world’s largest free-trade zone “made for the 21st century”.
The deal is between the US and 11 Pacific Rim countries including Canada, Peru and Japan. The scope of the deal is huge because the countries involved account for 40 percent of the global economy. Labour, environment and other standards are likely to get a boost from the accord. Secondly, it is significant for the number of trade areas covered. The details of the agreement are not available, but according to reports already published, the TPP pact has some 30 chapters on issues from intellectual property protections to handling foreign investor disputes to enforcing labour rights, and a number of annex agreements on specific tariff cuts between specific countries.
Two days after 12 countries reached an agreement on the Trans-Pacific Partnership following grueling Atlanta negotiations, US President has begun pressing for its ratification by the Congress. The president has made the deal the centerpiece of his trade and foreign policies but at the same time is facing opposition from some quarters on account of some clauses in the deal and interestingly, the opposition also comes from Democratic presidential candidate Hillary Clinton. The agreement will also be discussed in detail in other countries. But this is a pact that must become a reality. Its benefits far outweigh its flaws, which can be sorted out later.
Clinton opposes the deal on the ground that she is worried about currency manipulation not being part of the agreement and that pharmaceutical companies may have gotten more benefits and patients fewer. Some Democrats and labour groups opposing the deal fear that the pact will cost manufacturing jobs and weaken environmental laws. But Obama is likely to succeed. “I’ve said repeatedly that I would only sign an agreement and present an agreement to Congress if I could be absolutely certain that it was good for American workers and good for American businesses, good for American farmers and good for American ranchers, and good for American manufacturers,” he said. US also hopes that the TPP pact would strengthen American influence with Asian nations at a time China is flexing its financial muscles.
