Where from TPP and How far to go

By+Y.C.

The TPP （Trans - Pacific Partnership Agreement）， also called “Economic NATO （North Atlantic Treaty Organization”， is one of the important international multilateral economic negotiation organization， which was launched by 4 APEC （Asia Pacific Economic Cooperation） members of New Zealand， Singapore， Chile， and Brunei since 2002.

On October 5， in 2015， substantive breakthrough of TPP came to an agreement that was founded by 12 participant countries including United States， Japan and other pan-pacific countries， providing 40% of global economy.

The United States formally proposed expanding of TPP program in November 2009， Australia and Peru agreed to join. By existing protocols， the United States began to promote own trade issues， leading the TPP negotiations. Since then the trans-pacific strategic economic partnership agreement was renamed as the Trans-Pacific Part- nership Agreement， and growing， added Malaysia and Vietnam， the members extended into 9 countries.

On March 15， 2010， first round negotiation of TPP held in Melbourne， Australia， a total of eight members： the United States， Chile， Peru， Vietnam， Singapore， New Zealand， Brunei， and Australia.The negotiation involved tariff and non-tariff barriers to trade， e-commerce， services and intellectual property issues.The United States emphasized on content of promoting the development of emerging industries such as clean energy， the manufacturing， agriculture and goods and service exports， and strengthen the intellectual property rights.

On November 10， 2011， Japan officially decided to join the TPP negotiation.

Mexican Economic Affair Ministry announced related formalities that officially became the tenth member of TPP on October 8， 2012. They pointed out that the agreement is a influential trade organization that would provide a platform for exports to Mexico with big opportunities in the global supply chain.

On October 9， 2012， Canadian heritage minister James Moore on behalf of the international trade minister of Canada announced in Vancouver that they officially took part in the TPP.

On September 10， 2013， South Korea announced to join the TPP talks.

On October 5， 2015， the United States， Japan， Australia and other 12 countries successfully ended the TPP negotiations， and reached agreement.

The TPP countries are the largest goods and services export market of the United States， with total amount of export more than $700 billion every year. This Agreement is to eliminate tariffs on goods and services， tear down a host of non-tariff barriers among the members.endprint

With a population of 1.93 billion and GDP of $1.93 billion in East Asia and Asia-pacific region that is fastest-growing economic region in the world， annual GDP growth rate is as high as 8%.

there are potential broad market prospect and fundamental effect to domestic economic growth， employment and great power status， therefore， the United States took various administrative， economic means and diplomatic resources to lead the TPP negotiations， in order to break the existing rules in Asia-pacific region， take concrete actions in the Asia-pacific regional economic integration， rather a bystander， to ensure their benefit， by the intervention of the Asia-pacific regional economic integration to further dilute regional economic and political influence of China， Japan and other countries.Meanwhile TPP is one of strategic pillar of“Five Years Export Doubling Plan” of President Obama.

Between Japan and the United States， the biggest attraction that will enhance Japan-American economic relations further in the TPP multilateral framework， that not only has brought huge economic profit for the two countries， but also it has made enough trust in political and security value. The same is true in the United States. In fact， the strategy is greater than tactics. They expected that Japan thanks for joining TPP to reconstruct their economic position and consolidate the Japan-American relationship in the future.

In fact， Japanese textile producing industry is shrinking in manufacture， some enterprise commissioned Chinese factories to produce yarn and fabric actually. As for setting up factory in Vietnam， some companies reflect that local production of cotton yarn in Vietnam can not sale out and have been shipped back to China， because of our considerable domestic market. Vietnamese current land costs are rising， and wages of the workers also rose to $250， so even if the U.S. to it zero tariff， Vietnamese textile raw materials is not absolute competitive in the international market.

But any of arrangement of multilateral trade can not rule out non-participants of countries or regions outside the international trading system， otherwise it will be greatly restricted by itself.

Voices from inside of the TPP members， as well as form the western world， there are a lot of people object to the TPP agreement， which could stress continuously itself the employment pressure in these countries， moreover， some western countries are not joining in the TPP， the domestic agriculture， manufacturing workers may face unemployment，including the TPP member themselves.

As Clyde Prestowitz， president of the Washington-based Economic Strategy Institute argued that “America spends too much time worrying about grand strategic goals and not enough about making its economy strong.”endprint