Trans Pacific Partnership ( Tpp )

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After years of negotiation, the Trans-Pacific Partnership (TPP) was finally signed on February 4, 2016. As a large range of goods and services will be affected, countries have to consider both pros and cons of the agreement. For Vietnam, despite possible detriments due to IP protection, externalities, the partnership is generally beneficial as it significantly boosts Vietnam’s major export industries and increases the countries’ GDP in a short amount of time.
Trans-Pacific Partnership is considered one of the most ambitious free trade agreements, involving 12 countries—Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Pure, Singapore, United States, and Vietnam. The main goal of the partnership is to promote free trade by decreasing tariffs. Signatories also hope to strengthen relationship on economic policies (“Summary of TPP” 2015). For Vietnam, signing TPP is not only an economic consideration but also a political decision. TPP acts as a way to draw the members closer to US and balance power against China, preventing the rising power from dominating Asian market. Due to the elimination of tariffs, Vietnam will reap more benefits from obtaining raw materials from signatories in the TPP than from China and hence reduces its economic dependence on China for raw materials.
Trans-Pacific Partnership, with 30 chapters, sets new trade terms and business investment regulations along with environmental and labor policies. The agreement also
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