Trans-pacific partnership

2487 WordsNov 13, 201310 Pages
The Trans-Pacific Partnership Agreement and the U.S. economy Executive Summary -The Trans-Pacific Partnership Agreement is a free trade agreement initiated in 2005 and was joined by the U.S. in 2008 which proposes to liberalize trade in the Asia-Pacific region. -There is much concern over the Intellectual Property proposals put forth by the U.S. These proposals threaten to dial back public health safeguards set forth in the 2007 New Trade Deal of the Bush administration, increase prices of consumer goods, and restrict access to information on the internet. -There are 12 countries involved in negotiations, with China as an observer and considering entry. Overall, these countries make up about 40% of the world GDP and offer access to…show more content…
foreign policy in regards to China. China has an interest in observing the TPP negotiations because not only are they struggling to keep the value of the yuan low in order to continue to attract FDI, but the continued liberalization of its neighbors’ borders is making other players in the region increasingly competitive in regards to attracting foreign business. A growing number of countries in the area joining the trade agreement, dropping trade barriers and providing cheap labor without the bad reputation for product quality fade and infringement of IP rights will provide plenty of alternatives for foreign businesses looking to invest in the region. It is true that China is attempting to move its economy away from being a manufacturing powerhouse and into the next stage of development, but the threat of a massive outflow of foreign business, and the capital it provides, cannot be overlooked. Thus, if China joins the TPP so as not to be left behind, then it will have agreed to adopt the foreign trade policies set forth by the trade agreement. This means that strict intellectual property rights will help to ease the concerns many have about China’s continued infringements of property rights and general theft of R&D and intellectual property. Although being bound to an international agreement and actually enforcing (let alone practicing) the aspects of the contract are quite different matters, the added scrutiny China would be subject
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