10 things to know about TPP
TPP, abbreviated from Trans-pacific Strategic Economic Partnership Agreement, is an agreement and a treaty that permits free trading between 12 countries with a view to integrate Asian-Pacific economies. The 12 members of TPP are as follows: Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Canada, Peru, Singapore, Vietnam, the US and Japan. The four nations that founded TPP are Brunei, Chile, New Zealand and Singapore.
The TPP was signed on 3 June 2005, and came into effect on 28 May 2006. After negotiations in October 2015, 8 other nations joined the TPP, including Vietnam.
The main aim of TPP is to eliminate taxation as well as other obstacles that prevent the exchange of goods and services between its member countries.
In addition, TPP countries will agree on more common law and practices between its members, such as those concerning: intellectual properties, food quality, and labor safety.
Current members of the TPP account for 40% of global GDP, and 26% of global volume of goods exchange
The US wants the TPP to be its new outpost in Asia after having drawn itself into the Middle East for years. Moreover, many scholars believe that the US wants to build a united economy in the region via TPP in order to counter the development of China.
At the moment, there are 161 members in the WTO. As a result, it is difficult and will take a long time for its members to reach an agreement on any issue. The TPP, in contrast, can enact international laws that are outside the scope of WTO, such as: investment policies, controlling of state-run companies, product qualities, and labor.
Most international agreements are about the exchange of good and services, but TPP is a different story. The TPP itself can pass international legislations that are able to adjust policies and legal directions of its member states. In other words, legal systems of each member state must be in accordance with the TPP’s directions.
The TPP agreement comprises 29 chapters, of which only 5 are directly related to service and goods exchange. The remaining chapters mention a variety of issues related to standards about environment, labor quality, financial laws, food and medicine…
With this agreement, international companies and corporations can bring the governments of member states onto the TPP’s courts, especially if these countries pass laws and policies that are contrary to TPP standards. The court can force governments to pay compensation for not only the damage sustained, but also for the loss of possible future opportunities for these companies and corporations
Members had to sign an agreement to keep the process of negotiations about TPP laws in secret. These countries can only disclose the information with governments, organizations, and personnel that are directly responsible for counseling of negotiation policies.
Agreement by internet source.