TPP at a Glance

The article publishes by the Wall Street Journal on 30th April 2015 (http://blogs.wsj.com/briefly/2015/04/30/trans-pacific-partnership-at-a-glance/) summarizes the TPP deal and all its pros and cons.

It talks about the ten major things about the TPP. They are as follows:

  1. Japan and US are the main economies of this deal: The other nations are included to represent 40 % of the GDP
  2. China is not included : The US wants to write its own rules for trade domestically so that China will not impose its own system.
  3. Tariffs and Quotas would be reduced: US is hoping Japan will open up its highly restricted agricultural markets in exchange for the U.S. cutting tariffs on cars and auto parts.
  4. Lots of Rules and some controversial : Officials are looking to goose trade and foreign investment in other ways, including through strong intellectual property protections on everything.
  5. Cannot shake the US economy: U.S. exports, especially agriculture, will become more competitive, and other key industries such as high-tech services and finance could get a boost.
  6. Could boost US output by 0.4% : Prediction has estimated a lift to GDP of 0.4% by 2025.
  7. Fast track needed to get it passed
  8. Auto Industry is upset:  Some worry about U.S. tariffs on Japanese cars and parts disappearing, but most are insisting that the agreement include a mechanism to prevent Japan and other countries from manipulating their currencies.
  9. Unions are upset: Unions say the deal will give companies opportunity to outsource jobs and production to countries such as Vietnam that have lower wages and standards.
  10. No one knows when it will be completed.

For more information, Go through the link for the article provided.

One thought on “TPP at a Glance

  1. As I’ve continued to read about the TPP and the countries involved, I find it somewhat difficult to formulate a valid opinion. I’ve read plenty of articles discussing the benefits, but if there’s so many benefits, why have there been negotiations going on for 8+ years? Millions of aren’t even aware of the TPP at all. It would really be unfortunate to see only the top one percent of the world benefit from this agreement. I guess we’ll just have to wait and see.

    Like

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