What the Trans-Pacific Partnership Means for Southeast Asia

An article published on July 27th, 2015 in The Diplomat (http://thediplomat.com/2015/07/what-the-trans-pacific-partnership-means-for-southeast-asia/) describes how the Trans-Pacific Partnership could be a huge step in the right direction for the four Southeast Asian countries of Singapore, Brunei, Vietnam, and Malaysia that are involved in the negotiations. These countries could see significant financial and social reforms stemming from the TPP. For example, Vietnam and Malaysia currently have some of the world’s highest tariffs and non-tariff barriers against foreign businesses, which has reduced foreign competition and caused rapid growth in their economies. Even with their high tariffs, Vietnam still exported almost US$7 billion worth of apparel and US$2.4 billion worth of footwear to the United States in 2012. Upon completion of the TPP, Vietnam will be able to export to the United States at a 0% tariff rate, which will make their exports much more competitive in the American market and could significantly increase their share of the market. The phasing out of these high tariffs will also expose US domestic industries to more strict competition from overseas, but ultimately the new reforms stemming from the TPP will make these Southeast Asian’s economies stronger. Should the United States and other countries involved in the TPP want increased competition from overseas? Why would the Southeast Asian countries want to open the doors to change and reforms? What effect will the TPP have on industries in the United States? Could the TPP cause even more foreign imports into the United States and other similar countries?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s