As the world becomes more interconnected, trade agreements have become an integral part of the global economy. With the sheer number of agreements in place, it can be overwhelming to keep track of which ones matter most. In this article, we`ll take a closer look at two of the biggest trade agreements in the world.
1. Trans-Pacific Partnership (TPP)
The Trans-Pacific Partnership (TPP) was a trade agreement between twelve Pacific Rim countries that sought to establish a free trade area among its members. The countries involved included Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.
The TPP aimed to reduce or eliminate tariffs and other trade barriers, increase investment, and establish common standards among its members. It also covered a broad range of issues, including intellectual property, labor practices, and environmental protections.
However, the TPP was not without controversy. Many critics were concerned about the lack of transparency during the negotiation process and the potential impact on domestic industries and jobs. In 2017, the United States withdrew from the agreement, leaving the other eleven countries to continue without them.
2. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
While the TPP may no longer exist in its original form, a successor agreement has taken its place. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement among the same eleven countries that were involved in the TPP but without the United States.
Like the TPP, the CPTPP aims to reduce trade barriers and increase investment among its members. It also includes provisions on labor standards, environmental protections, and intellectual property.
One of the key differences between the TPP and the CPTPP is the absence of the United States. This change has led to some adjustments, particularly in terms of the rules on intellectual property. However, the CPTPP is still expected to have a significant impact on the global economy.
In conclusion, trade agreements are an essential part of the global economy, and the TPP and CPTPP are two of the most significant agreements in the world. While both agreements aim to reduce trade barriers and increase investment among their members, the TPP was controversial due to its lack of transparency and potential impact on domestic industries. The CPTPP, on the other hand, is a successor agreement that includes the same countries as the TPP but without the United States. Regardless of their differences, both agreements have the potential to shape the future of trade and investment in the Asia-Pacific region and beyond.