the trans-pacific partnership

The Trans-Pacific Partnership (TPP)

The Trans-Pacific Partnership (TPP) is a trade relationship among twelve member countries. Vietnam, Singapore, Peru, New Zealand, Mexico, Malaysia, Japan, Chile, Canada, Brunei, Australia, and the United States are among the twelve nations until January 23rd, 2017. The Trans-Pacific Partnership agreement's final proposal was signed on February 4, 2016 in Auckland, New Zealand. Despite the fact that the TPP deal took seven years to negotiate, it cannot be ratified due to the United States' withdrawal earlier this year. The TTP agreement was billed as the first international trade agreement in history. The deal brings together eleven Pacific Rim countries together with the United States who jointly as an annual GDP of approximately $28 trillion. This figure is estimated to represent nearly forty percent of the global gross domestic product (Granville). The trade agreement nevertheless is believed to be a means of solving numerous challenges that face global trade.

The Exit of the United States

The former Obama administration maintained that the United States would benefit a lot from the TPP agreement. The government claimed that the trade agreement would enhance environmental and labor protections, promote good governance and transparency, reduce poverty in member states, sustain the creation and retention of jobs and embrace economic growth. The Obama administration believed that the implementation of the Trans-Pacific Partnership would lead to the enhancement of competitiveness, productivity, and innovation in addition to improved living standards for the citizens. The current President Donald Trump, however, holds the contrary idea. Throughout his campaign, President Trump had maintained that his first agenda would be to ensure the pullout of the United States from the Trans-Pacific Partnership. President Trump upheld that the TPP agreement could lead to the loss of competitive wages and the United States jobs. The Trump government delivered on its campaign promise and abandoned the TPP agreement (Public Citizen).

Contents of the TPP

The Trans-Pacific Partnership agreement contains measures that aim at reducing trade barriers between the member states. The agreement also touches on the protection of intellectual property as well as labor standards. The trade pact also discusses matters relating to environmental protection, good governance, regulatory cooperation, investor-state arbitration and human rights (Amadeo).

Positive Effects of Joining the TPP

Expanded Market

Most of the nations that are supporting the Trans-Pacific Partnership are eyeing the expanded market access opportunities that come with joining the trade agreement. A significant majority of the member states stand to gain from the improved competitive advantage and increased market. Research had shown that shown that joining the TPP would give such as Malaysia, Mexico, Chile, Brunei and Peru access to the huge United States market. This larger market access was anticipated to attract foreign investments in these nations thus boosting their economies (Amadeo). This is however not likely to happen due to the recent withdrawal of the United States. Critics have even suggested that without the United Sates the trade agreement is likely to collapse. These critics argue that most of these nations joined the Trans-Pacific Partnership with the aim of having a share of the Unite State's huge market and therefore with the withdrawal of the U.S a majority of the member states are likely to review their stand.

Economic Growth

The goal of the Trans-Pacific Partnership is to bring Pacific nations together through the enactment of lower tariffs and act as a shield against the growing regional influence of China. Studies have shown that the trade agreement had the capability of raising the exports and imports in the United States. Research has also shown that other member states such as Malaysia would benefit from increased job opportunities, increase in earnings and growth of the exportation rate. In general, all the countries are likely to experience an increase in economic growth. With the elimination of the trading barriers, member states are expected take advantage of the international market by offering their exports to a broad market with no restrictions. The TPP agreement will increase the demand for goods and services thus creating more businesses for the member states which will in return lead to economic growth (Amadeo).

Peaceful Coexistence

Due to the anticipated economic growth member states are more likely to embrace peaceful coexistence with each other so as to ensure smooth trade. Nations with definitely maintain a friendly environment so as to enjoy a wider market. A peaceful coexistence among the countries is essential for the establishment of better terms of trade that are advantageous to the members. This peaceful coexistence will also promote economic growth, innovation, and prosperity of the member states.

Better Standard of Living

Implementation of the TPP agreement will undoubtedly result in improved living standards in the countries. The trade pact is expected to improve the quality of goods and services thus fostering better living standards among the citizens of the member countries. Researchers suggest that some members are likely to experience an increase in employment opportunities thus improving the welfare of the society. Additionally, the trade agreement will ensure easy access to a broad variety of goods at affordable price hence enhance the quality of living in the member states (Amadeo).

Negative Effects of Joining the TPP


Dumping is one of the adverse effects associated with the implementation of the trade pact. Smaller member states are likely to experience dumping in their markets due to the influence of economic giant states such as the United States. There are fears that economic giants may sell their goods at a lower price than the economical prices thus leading to dumping of cheap products in smaller economies. Due to the lack of trade barriers, competition is likely to increase hence creating price war competition. The stiff competition and free trade will thus encourage dumping in the small economies. Duping has serious economic effects as it pushes domestic firms out of the market (Amadeo).

Harmful Products

Other perceived disadvantage of the TPP agreement is the eruption of harmful products that do not meet the desired standards. This phenomenon is based on the fact that unscrupulous traders may take advantage of the less restriction in trade and supply poor quality or harmful products. If such products find their way into the markets, then the citizens of the member states are likely to be significantly affected. Such incidences can, however, be avoided by putting in place strict measures and standards that will block the entry and sale of such products in the market (Public Citizen).

Loss of Jobs

Opponents of the Trans-Pacific Partnership in the United States believe that the agreement will lead to loss of employment in the country. With the lack of trade barriers, there were fears that manufacturing jobs would be lost to nations with cheap labor thus leaving American citizens jobless. Being an economic giant labor law and unions are very powerful hence regulating the minimum wage rate in the country to ensure that the citizens are adequately rewarded for their work. On the contrary, other member states with small economies have weaker labor unions thus making the wage rate in such nations to be low. Manufacturers might thus be obliged to transfer their operations to such small economies so as to reduce the cost of production and as a result leave Americans with no jobs (Granville).


Trade liberalization has distributive outcomes that are viewed by most economies as a threat. Despite the fact that the Trans-Pacific Partnership has many positive gains such as improved living standards, economic growth, peaceful coexistence and expanded market, it also comes with its share of negative effects. For some nations, the costs associated the trade agreement are way much greater than the perceived benefits. It is for this particular reason that the deal has faced strong criticism from nations such as Malaysia and now the withdrawal of the United States. United State's decision to withdraw from the Trans-Pacific Partnership has been a major blow to the trade agreement. With the pullout of the United States, most critics are waiting to see what will happen with the remaining members. The future of the TPP agreement is, however, uncertain at the moment.

Works Cited

Amadeo, Kimberly. "What Is the Trans-Pacific Partnership?" 2017. the balance. 12 April 2017.

Granville, Kevin. "What Is TPP? Behind the Trade Deal That Died." 2017. The New York Times. 12 April 2017.

Public Citizen. "Trans-Pacific Partnership (TPP): Expanded Corporate Power, Lower Wages, Unsafe Food Imports." 2017. Public Citizen. 12 April 2017.

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