Trans-Pacific Partnership

This article is about the defunct proposed trade agreement. For its 11-nation successor, see Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Trans-Pacific Partnership
Leaders from 10 of the 12 prospective member states at a TPP summit in 2010
TypeTrade agreement
Drafted5 October 2015; 9 years ago (2015-10-05)[1][2][3]
Signed4 February 2016; 8 years ago (2016-02-04)
LocationAuckland, New Zealand
EffectiveNot in force
ConditionRatification by all original signatories, or (2 years after signature) ratification by at least 6 states corresponding to 85% of GDP of original signatories[4]
Signatories
Ratifiers
DepositaryNew Zealand
LanguagesEnglish (prevailing in the case of conflict or divergence), Spanish, Vietnamese, Japanese, French
Full text
Trans-Pacific Partnership at Wikisource

The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement (TPPA), was a proposed trade agreement between 12 Pacific Rim economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States. In the United States, the proposal was signed on 4 February 2016 but not ratified as a result of significant domestic political opposition.[5] After taking office, the newly elected President Donald Trump formally withdrew the United States from TPP in January 2017,[6] therefore ensuring the TPP could not be ratified as required and did not enter into force. The remaining countries negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporated most of the provisions of the TPP and which entered into force on 30 December 2018.

The TPP began as an expansion of the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) signed by Brunei, Chile, New Zealand and Singapore in 2005. Beginning in 2008, additional countries joined the discussion for a broader agreement: Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam, bringing the negotiating countries to twelve. In January 2017, the United States withdrew from the agreement.[7] The other 11 TPP countries agreed in May 2017 to revive it[8][9] and reached agreement in January 2018. In March 2018, the 11 countries signed the revised version of the agreement, called Comprehensive and Progressive Agreement for Trans-Pacific Partnership.[10] After ratification by six of them (Australia, Canada, Japan, Mexico, New Zealand and Singapore), the agreement came into force for those countries on 30 December 2018.

The original TPP contained measures to lower both non-tariff and tariff barriers to trade,[11] and establish an investor-state dispute settlement (ISDS) mechanism.[12] The U.S. International Trade Commission,[13] the Peterson Institute for International Economics, the World Bank and the Office of the Chief Economist at Global Affairs Canada stated that the final agreement, if ratified, would have led to net positive economic outcomes for all signatories.[Note 1] Many observers at the time said the trade deal would also have served a geopolitical purpose, namely to reduce the signatories' dependence on Chinese trade and bring the signatories closer to the United States.[22][23][24][25]

  1. ^ "Trans-Pacific free trade deal agreed creating vast partnership". BBC News. 5 October 2015. Retrieved 5 October 2015.
  2. ^ Handley, Paul (5 October 2015). "12 Pacific countries seal huge free trade deal". Yahoo! News. AFP. Retrieved 7 October 2015.
  3. ^ "US and 11 nations seal Pacific trade deal". Financial Times. the TPP must still be signed formally by the leader of each country and ratified by their parliaments(subscription required)
  4. ^ "Here's What Needs to Happen in Order for the Trans-Pacific Partnership to Become Binding". The Diplomat.
  5. ^ Kenton, Will. "Trans-Pacific Partnership (TPP)". Investopedia. Dotdash Meredith. Retrieved 5 August 2022.
  6. ^ Riley, Charles (23 January 2017). "Trump's decision to kill TPP leaves door open for China". CNN. Retrieved 23 January 2017.
  7. ^ Trump, Donald J. (25 January 2017). "Withdrawal of the United States From the Trans- Pacific Partnership Negotiations and Agreement". Federal Register.
  8. ^ Shaffer, Sri Jegarajah, Craig Dale, Leslie (21 May 2017). "TPP nations agree to pursue trade deal without US". CNBC. Retrieved 21 May 2017.{{cite news}}: CS1 maint: multiple names: authors list (link)
  9. ^ hermesauto (21 May 2017). "Saving the Trans-Pacific Partnership: What are the TPP's prospects after the US withdrawal?". The Straits Times. Retrieved 21 May 2017.
  10. ^ Ming, Cheang (9 March 2018). "Global trade just had a 'one step forward, one step back' day". CNBC. Retrieved 10 March 2018.
  11. ^ "Australia and the Trans-Pacific Partnership: what we do and don't know". The Guardian. 6 October 2015.
  12. ^ "Summary of the Trans-Pacific Partnership Agreement". USTR. 4 October 2015. Retrieved 16 October 2015.
  13. ^ "Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors" (PDF). United States International Trade Commission.
  14. ^ "Potential Macroeconomic Implications of the Trans-Pacific Partnership" (PDF). World Bank. Archived from the original (PDF) on 12 February 2016.
  15. ^ Hufbauer, Gary Clyde (5 February 2016). "Why the Trans-Pacific Partnership isn't a bum deal". PBS. Retrieved 7 February 2016.
  16. ^ Staff writers. "Trans-Pacific Partnership would boost GDP by $4.3 billion: study". Retrieved 10 September 2016.
  17. ^ Rodrik, Dani (10 February 2016). "The Trade Numbers Game". Project Syndicate. Retrieved 22 May 2016.
  18. ^ "Studies of TPP: Which Is Credible? | PIIE". piie.com. 30 January 2016. Retrieved 22 May 2016.
  19. ^ ""Splendid Isolation" as Trade Policy: Mercantilism and Crude Keynesianism in "the Capaldo Study" of TTIP - ECIPE". Retrieved 10 August 2016.
  20. ^ "The Trans-Pacific Partnership (TPP): In Brief" (PDF). Congressional Research Service.
  21. ^ "TPP is a structural reform: Let's evaluate it with structural models". VoxEU.org. 3 July 2016. Retrieved 3 July 2016.
  22. ^ Cite error: The named reference :9 was invoked but never defined (see the help page).
  23. ^ Cite error: The named reference :6 was invoked but never defined (see the help page).
  24. ^ Cite error: The named reference :7 was invoked but never defined (see the help page).
  25. ^ Cite error: The named reference :26 was invoked but never defined (see the help page).


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