The Trans Pacific Partnership

1632 WordsDec 15, 20157 Pages
Yasha Shamayeli 12/15/15 Prof. Shahrouri Econ 335 The Trans Pacific Partnership Globalization has made it far easier for people to get their hands on products they desire so much. It is not a new phenomenon, the world economy has become increasingly interdependent for a long time but the process has been greatly accelerated due to a variety of factors and one important factor are the growth of global trading blocks which have reduced national barriers, specifically tariff barriers that are in turn encouraging global trade. This is also referred to as free trade. Essentially, free trade enables lower prices for consumers, increases exports, benefits from economies of scale, increased competition and greater choices of goods. The positive…show more content…
Negotiations began in January 2008 among United States, Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore and Vietnam. Subsequently, they have expanded to include Canada, Japan and Mexico. This lead to 20 formal negotiation rounds spread out throughout the past 7 years. As of today the TPP are arguably the most important trade negotiations since 1995, when the World Trade Organization went into effect. “The countries involved produce 40% of the world 's total GDP (Gross Domestic Product) of $107.5 trillion, 26% of its trade, and 793 million of its consumers” (Amadeo, 2015). The Obama Administration, in close partnership with Congress and a various stakeholders, is working to conclude a strong agreement that addresses the issues that U.S. businesses and workers face in today’s world. TPP’s ambitious goals are to promote trade, investment, job creation, economic growth, development and innovation through the collaboration of the signing countries. The Trans-Pacific Partnership agreement would build on current international trade rules confined in the WTO; however, it would go far beyond these trade obligations in many respects and include everything from pharmaceuticals to digital copyright law. All of the 12 countries would remove trade barriers almost completely among themselves, with just a few product exceptions. The agreement would also provide
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