China: Pros and Cons of the Regional Comprehensive Economic Partnership Part 1

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

The Trans-Pacific Partnership aims to establish a tariff free economic cooperation zones between twelve countries around the Pacific Ocean. These countries are the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, thus creating the largest trade zone in the world (Jackson, 2015). The

These export trade agreements, in the next two decades, will create thousands of available jobs, and also boost the GDP by approximately $25 billion, which benefits consumers, households and economic growth. There are several strategies under the new trade agreement that targets partnership and bring benefits:

Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim economies. APEC members are described as ‘economies’ because the APEC cooperative process is predominantly concerned with trade and economic issues, with members engaging with one another as economic entities. APEC promotes free trade throughout the Asia-Pacific region. It was established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; to fears that highly industrialised Japan (a member of G8) would come to dominate economic activity in the Asia-Pacific region; and to establish new markets for agricultural products and raw materials beyond Europe.(Andrew Elek)

The population of the Asia region of the world contributes a massive amount of exporting goods, and global business as a whole. The sheer number of people consuming goods that must be imported to support the large population force the need for trade with other regions. The demand for resources is high and the need to develop strong trade relations with other countries is vital to the continued growth and success of Asian countries.

Apart from the free trade alliances with the U.S, Canada is also seen to possess agreements such as TPP (Trans-Pacific Partnership) and CETA (Canada-EU Comprehensive Economic and Trade Agreement). These trade agreements have facilitated creating strategic alliances with a number of nations such as Japan, Malaysia, Vietnam and Australia. Additionally strategic alliances have also been facilitated with many European nations19. Apart from reduction in tariff rates, trade of services, intellectual property and investments have become much more regulated and transparent. Expansion into Canada would therefore enable the companies to take advantage of such free trade agreements and develop alliances globally20. Since such trade alliances have strengthened the economy, infrastructural development in the nation has been quite rapid. Ease in business operations has therefore been facilitated. Additionally, access of new foreign markets have also become easy12.

Trans-Pacific partnership opens a new free market field with minimal trade restrictions. Members are expected to conduct trade within the jurisdictions of the member states with much

The China-Canada relationship is the solution to every problem Canada faces in the long term and as a result, greatly improves Canada’s economy as a whole. By trading with China we are able to increase the exports of both services and manufacture goods via raw resources and healthcare and decrease our reliance, as a country, on the United States. China is also newly industrialized country which has shown enormous economic growth. In fact, China now accounts for about six percent of Canada’s world emerging as Canada’s second largest trading partner. China’s role in Canada’s economic market will clearly enhance the lives of all Canadians, through the sheer amount of trades they bring in and for the future of Canada’s trade; with China at Canada’s side, we will be able to set a stable economic foundation for all, making this extremely important for all Canadians.

There are three reasons in particular why free trade agreements aid in society. Free Trade agreements increase Australia’s productivity, add attractiveness to Australia’s investment destination, and give Australia more trading opportunities

Fifteen years ago, the United States entered an agreement with its neighboring countries, Canada and Mexico, to not only increase trade productivity for itself but, allot its sister nations to the north and south the same advantages. Although the North American Free Trade Agreement (NAFTA) has come with many benefits to our nation, it has also brought in many consequences. The United States is now facing similar challenges with Asian countries through the Trans Pacific Partnership (TPP). The significance of Free Trade Agreements on our economy has sparked a movement and is now currently one of the most widely debated topics in our country.

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.

It is also important to realize that there are many people out there that seem to be more pessimistic in terms of their views. However it is people like this that are not looking to a bright potential future. Many believe that the U.S and China are both the countries have their own Pacific powers. If the tensions between two countries risen, there are a chance of having a new cold war throughout world. Well this always remains a possibility, according to data and future predictions; the United States and China are going to have a strong bilateral international relationship. They already have

China is on its way to attaining mega market status as a consumer of technological goods and services. Countries unwilling or unable to compete for a share of this market place put themselves at a substantial competitive and economic disadvantage. The admission of China into the WTO will greatly benefit many companies across the board in the United States. The potential for computer makers, software makers, internet providers and internet service providers are immense and American companies could gain tremendously from their potential. These benefits will not be limited to the big name companies of the United States either. Smaller start-up companies will be on the same grounds now and receive the same benefits as larger firms. The small companies will now be able to sell their products in China where as they could not do so before because of the numerous obstacles that only the larger firms were equipped to maneuver around in China. Thus all businesses working from within the United States will have the fair opportunity to extend their reach into China.

China might object to a bilateral agreement encouraging joint ventures because it would place purely domestic Chinese firms at a relative economic disadvantage. However, to persuade China to adopt an agreement, the U.S. could point out that China cannot continue to depend on selling low-value-added goods to Western consumers for economic growth. As PRC officials have stated, China must shift from an export-led to a consumption-based economy by harvesting domestic demand from its growing middle class. Joint ventures would allow China to produce goods domestically for consumption rather than export through businesses that are partially owned by local businesspeople.

The numerous trade agreements developed between different groups of countries reveal the success of developing such relationships. Countries these trade agreements have reported increased imports and