Trans-Pacific Partnership (TPP) V RCEP


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries signed on 4 February 2016 in Auckland, New Zealand, after seven years of negotiations, which has not entered into force.

President Obama made the TPP negotiations the most transparent in American history, and now that the deal is complete the Administration can provide a comprehensive overview of the benefits it will deliver for the American people—and one of the most meaningful benefits is that the TPP will cut over 18,000 taxes that other countries impose on American exports. For the first time, this report details many of the most significant tax cuts that the TPP will guarantee for American exporters
 
TPP strengthens the U.S. economy, which is the foundation of U.S. national security and a critical source of our influence abroad. TPP helps ensure that the global economy reflects our interests and values by requiring other countries to play by fair wage, safe workplace, and strong environmental rules that we help set.
 
And TPP reinforces USA’s  commitment to this vital region, helping the USA strengthen its relationships with its partners and allies.

- Since World War II, U.S. leadership of the global trading system not only ushered in an era of peace and prosperity unparalleled in history – for the American people and the world – but also has been a key pillar of our global leadership overall.

- But this rules-based system – and America’s economic competitiveness - is now being eroded by other, less open models. To meet this challenge, the United States must play a leadership role in writing rules of the road that strengthen our economy and promote a fair global economic system. TPP is how we do that.

- When the rules are fair, Americans can out-compete anyone in the world. But the status quo puts our workers and businesses at a disadvantage, with higher costs for American goods, more barriers to trade, and lower standards for workers and the environment abroad than we have at home.



Regional Comprehensive Economic Partnership (RCEP)



 



Another Asian free trade agreement (FTA), the Regional Comprehensive Economic Partnership (RCEP), is also due , with a round of substantive talks in August and another to come in October.



 



With TPP spearheaded by the U.S. and RCEP led by China, there has been a lot of attention lately on how the two countries are using the FTAs to benefit themselves and keep each other out of their respective regional economic arrangements. Meanwhile, the Association of Southeast Asian Nations (ASEAN) and its member states are also playing an important role in the future of trade arrangements in the Asia-Pacific. As its economic cooperation and integration efforts have reached a crucial stage, ASEAN is concerned not only about the welfare effects of TPP and RCEP on its member states, but also about their impact on the development of ASEAN as an economic community.




Saturday, 02nd Apr 2016, 10:19:53 AM

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