AFP, Tokyo :
The 12-country Trans-Pacific Partnership (TPP), signed on Thursday in New Zealand, aims to eliminate trade barriers such as tariffs in a bloc that accounts for 40 percent of the global economy. The founding members of the Pacific Rim group are – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.The far-reaching deal is designed to boost their wealth by doing away with barriers to the free flows of goods, services and investment capital. Because of its massive scope, members hope it will serve as a blueprint for future global rules for trade and doing business, ensuring a level playing field for all firms, protecting labour rights and keeping free Internet access. The TPP is the main economic component of US President Barack Obama’s strategic shift toward the Asia-Pacific.
The alliance of broadly like-minded nations is seen as a counterweight to China, as Beijing expands its sphere of economic and political influence and promotes its way of doing business — seen as often running counter to Western standards.
China’s establishment of the Asian Infrastructure Investment Bank (AIIB), which could challenge Western-controlled institutions such as the International Monetary Fund (IMF) that currently set trading rules, has added a sense of urgency.
The TPP also comes as global free trade talks move painstakingly slowly at the World Trade Organisation (WTO), which requires unanimous agreements and where negotiations often run foul of conflicting interests between mature economies and emerging nations.
The 12-country Trans-Pacific Partnership (TPP), signed on Thursday in New Zealand, aims to eliminate trade barriers such as tariffs in a bloc that accounts for 40 percent of the global economy. The founding members of the Pacific Rim group are – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.The far-reaching deal is designed to boost their wealth by doing away with barriers to the free flows of goods, services and investment capital. Because of its massive scope, members hope it will serve as a blueprint for future global rules for trade and doing business, ensuring a level playing field for all firms, protecting labour rights and keeping free Internet access. The TPP is the main economic component of US President Barack Obama’s strategic shift toward the Asia-Pacific.
The alliance of broadly like-minded nations is seen as a counterweight to China, as Beijing expands its sphere of economic and political influence and promotes its way of doing business — seen as often running counter to Western standards.
China’s establishment of the Asian Infrastructure Investment Bank (AIIB), which could challenge Western-controlled institutions such as the International Monetary Fund (IMF) that currently set trading rules, has added a sense of urgency.
The TPP also comes as global free trade talks move painstakingly slowly at the World Trade Organisation (WTO), which requires unanimous agreements and where negotiations often run foul of conflicting interests between mature economies and emerging nations.
