Advantages Of Trans Pacific Partnership Agreement

1. The United States withdrew because it reduced its overall bargaining power. The United States has felt that the TPP has reaped many of its current benefits on the world stage. Many of the medical patents, professional intellectual property and agricultural exports bring to the country many wealth that is not considered the norm elsewhere in the world. Although the other countries wanted the United States to be present because of the access to value they would get to the U.S. economy, the idea was that there would be more concessions, a breaker deal for the other countries that participated in the project. We know this so far: President Obama informed Congress on November 5 that he was signing the TPP. This triggered a 90-day review of the treaty text, meaning the president will sign the TPP in February 2016. If and if the House of Representatives and the Senate submit legislation after the President is signed, the voting period begins at 45 days after the introduction of the law. The House of Representatives Ways and Means Committee will vote on or before the 45th day, and the entire House of Representatives has 15 days to vote on the bill. The bill then goes to the Senate, where the Finance Committee has 15 days to vote on the bill, followed by a new 15-day deadline for a full Senate vote. On January 23, 2017, Donald Trump signed a presidential memorandum confirming the U.S. withdrawal from the Trans-Pacific Partnership.

Canada`s potential economic benefits under the TPP agreement depend on U.S. participation in the TPP agreement. There are a number of issues that could affect Canada`s existing economic relationship with the United States when the TPP agreement enters into force. Over time, tariffs between TPP members on a number of products would be eliminated, significantly reducing trade barriers, including for countries with high tariffs on certain products. The aim is also to improve the development of supply chains, which include careful coordination of production decisions, shipping rules, investments and the transfer of information between different countries. The TPP contains social, labour and environmental standards, such as standards dealing with illegal trade and illegal logging, and which strengthen copyright rules that are likely to affect commercial and production chains (Lakatos et al. 2016). Some of the Canadian government`s TPP agreements support the removal of tariffs on products such as pork, fruit, rapeseed, machinery and minerals; Increased mobility of highly skilled and commercial personnel; increased imports of foreign auto parts and offset losses to farmers under the TPP through a series of multi-billion euro programmes, such as quota protection, equipment modernization and marketing assistance. We will see how the policy of the election year approaches the subject. The White House is committed to transferring the TPP to the final year of the presidential term.

Here is some interesting information that I recently stumbled upon from Dr. Sheng Lu, Department of Fashion – Apparel Studies, University of Delaware: ”[Since the 1985 U.S. Free Trade Agreement], the average lag between signing and implementing a free trade agreement (FTA) in the United States is 25.5 months (more than 2 years). However, since 2006, the average lag has increased to 48.8 months (approximately 4 years). (Source) The agreement would have increased workers` incomes in all countries by $223 billion per year, $77 billion for American workers. Karen Kerrigan: As noted in a recent article, parts manufacturers like Cobalt Enterprises (which started in a garage) are eagerly awaiting the TPP agreement in Washington State.