Trans-Pacific Strategic Economic Partnership Agreement
The Trans-Pacific Strategic Economic Partnership (P4) between Brunei Darussalam, Chile, Singapore and New Zealand is the first free trade agreement between Asia, the Pacific and America. It is also New Zealand`s first and only trade agreement with a Latin American country. “The common wish was to create a comprehensive, forward-looking trade agreement that would establish high-quality benchmarks for trade rules and contribute to the promotion of trade liberalization and trade facilitation within the APEC region.” The TPP brings nearly 40 percent of the world economy to higher standards. In addition to liberalizing trade and investment between us, the agreement also addresses the challenges facing our stakeholders in the 21st century, while taking into account the diversity of our level of development. We expect this historic agreement to promote economic growth and support higher-paying jobs; Improving innovation, productivity and competitiveness; Improving living standards reducing poverty in our countries; Promote transparency, good governance and the protection of jobs and the environment. Eleven Pacific countries signed the revised Trans-Pacific Partnership in Santiago, Chile, on Thursday, March 8, 2018, which called into question the trade and investment agreement just over a year after the U.S. withdrawal. In the decade since the P4 came into force in 2006, exports to Chile have increased to $128 million, exports to Singapore have doubled to more than $1.13 billion, and exports to Brunei, although modest, have almost doubled to $5 million. The agreement also opened up more investment and service opportunities. The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) came into force on December 30, 2018 for Australia, New Zealand, Canada, Japan, Mexico and Singapore, with Vietnam following on January 14, 2019. Brunei, Chile, Malaysia and Peru will begin 60 days after the completion of their ratification process.
The agreement creates the world`s third largest free trade area in terms of GDP. The United States is retreating in the Asia-Pacific region, the most dynamic economic region in the world. Over the past decade, growth in U.S. exports to Asia has delayed overall export growth. The United States is gradually losing market share in trade with Asian countries. Asian countries have negotiated more than 160 trade agreements with each other, while the United States has signed only three with regional countries (South Korea, Singapore and Australia). Many U.S. producers and farmers are being squeezed out by local competitors or companies based in the EU or Australia, which forge their own preferential trade agreements throughout the region. As Asian production chains have expanded to meet the boom in regional demand, U.S. suppliers of intermediate goods are lagging behind.
In short, Asian nations are designing a new architecture for trade in the most dynamic region of the world economy – and threatening to draw “a line in the middle of the Pacific.” The P4 laid the groundwork for a much more ambitious Pacific Rim agreement. Eight other countries joined the P4 economies in negotiating the free trade agreement known as the Trans-Pacific Partnership (TPP). One of the objectives of the Trans-Pacific Agreement is to create a trade agreement that could be seen as a model in the Asia-Pacific region and that could eventually attract new members. The agreement is intended for membership “on terms that must be agreed upon by the parties, by any APEC economy or by any other state.” Confirmation of the Technical Barriers to Trade Agreement The RCEP is expected to reach more than $100 trillion by 2050, about double the size of projects in the TPP economies. It would be the largest free trade agreement in the world, but without the United States or American membership. On November 14, 2009, during his first trip to Asia as President of the United States, President Barack Obama announced the united States` intention to develop an agreement