Trans-Pacific Partnership

Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Leaders of TPP member states.jpg
Leaders of prospective member states at a TPP summit in 2010
TypeTrade agreement
Drafted5 October 2015; 2 years ago (2015-10-05)[1][2][3]
Signed4 February 2016; 2 years ago (2016-02-04)
LocationAuckland, New Zealand
EffectiveNot in force
ConditionRatification by all original signatories, or (2 years after signature) ratification by at least 6 states corresponding to 85% of GDP of original signatories[4]
Original
signatories
Ratifiers
DepositaryNew Zealand
LanguagesEnglish (prevailing in the case of conflict or divergence), Spanish, Vietnamese, Japanese, French
Trans-Pacific Partnership at Wikisource

The Trans-Pacific Partnership (TPP) is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and United States signed on 4 February 2016, which was not ratified as required and did not take effect. After the United States withdrew its signature,[6] the agreement could not enter into force. The remaining nations negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporates most of the provisions of the TPP.

The TPP began as an expansion of the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) signed by Brunei, Chile, New Zealand and Singapore in 2005. Beginning in 2008, additional countries joined the discussion for a broader agreement: Australia, Canada, Japan, Malaysia, Mexico, Peru, the United States, and Vietnam, bringing the negotiating countries to twelve. In January 2017, the United States withdrew from the agreement.[5][7] The other 11 TPP countries agreed in May 2017 to revive it[8][9] and reached agreement in January 2018. In March 2018, the 11 countries signed the revised version of the agreement, called Comprehensive and Progressive Agreement for Trans-Pacific Partnership.[10]

The original TPP contained measures to lower both non-tariff and tariff barriers to trade,[11] and establish an investor-state dispute settlement (ISDS) mechanism.[12][13] The U.S. International Trade Commission,[14] the Peterson Institute for International Economics, the World Bank and the Office of the Chief Economist at Global Affairs Canada found the final agreement would, if ratified, lead to net positive economic outcomes for all signatories, while an analysis using an unorthodox model by two Tufts University economists found the agreement would adversely affect the signatories.[Note 1] Many observers have argued the trade deal would have served a geopolitical purpose, namely to reduce the signatories' dependence on Chinese trade and bring the signatories closer to the United States.[24][25][26][27]

Membership

  Parties
  Signatories
  Signatory (withdrawn)

Twelve countries participated in negotiations for the TPP: the four parties to the 2005 Trans-Pacific Strategic Economic Partnership Agreement and eight additional countries. All twelve signed the TPP on 4 February 2016.[28] The agreement will enter into force after ratification by all signatories, if this occurs within two years. If the agreement is not ratified by all before 4 February 2018, it will enter into force after ratification by at least 6 states which together have a GDP of more than 85% of the GDP of all signatories.

Country Status 2005 agreement Signature of TPP Ratification of TPP Start of TPP
Negotiations
 Singapore Party (28 May 2006) 4 February 2016 February 2008
 Brunei Party (28 May 2006) 4 February 2016 February 2008
 New Zealand Party (12 July 2006) 4 February 2016 11 May 2017 February 2008
 Chile Party (8 November 2006) 4 February 2016 February 2008
 Australia Non-party 4 February 2016 November 2008
 Peru Non-party 4 February 2016 November 2008
 Vietnam Non-party 4 February 2016 November 2008
 Malaysia Non-party 4 February 2016 October 2010
 Mexico Non-Party 4 February 2016 October 2012
 Canada[29] Non-party 4 February 2016 October 2012
 Japan Non-party 4 February 2016 20 January 2017 May 2013

Withdrawn member

On 23 January 2017, US President Donald Trump signed a presidential memorandum to withdraw the United States' signature from the agreement, making its ratification as it was in February 2016 virtually impossible.[30]

Country Status 2005 agreement Signature of TPP Start of TPP
Negotiations
Withdrawn
 United States Non-party 4 February 2016 February 2008 23 January 2017[31]

On April 13, 2018, U.S. President Donald Trump said the United States may rejoin the Trans-Pacific Partnership.[32] [33][34][35]

Potential members

APEC members may accede to the TPP, as may any other jurisdiction to which existing TPP members agree. After an application for membership is received, a commission of parties to the treaty negotiates conditions for accession.

South Korea did not participate in the 2006 agreement, but showed interest in entering the TPP,[36] and was invited to the TPP negotiating rounds in December 2010 by the U.S. after the successful conclusion of its Free trade agreement between the United States of America and the Republic of Korea.[37] South Korea already had bilateral trade agreements with some TPP members, but areas such as vehicle manufacturing and agriculture still needed to be agreed upon, making further multilateral TPP negotiations somewhat complicated.[38] South Korea may join the TPP as part of a second wave of expansion for the trade agreement.[39]

Other countries and regions that are interested in TPP membership include Taiwan,[40] the Philippines,[41] and Colombia[42] as of 2010; Thailand[43] and Laos[44] as of 2012; and Indonesia,[45] Cambodia,[46] Bangladesh,[47] and India[48] as of 2013. According to law professor Edmund Sim in 2013, many of these countries would need to change their protectionist trade policies in order to join the TPP.[49]

The largest economy in the Pacific Rim not involved in the negotiations is China. According to the Brookings Institution in 2013, the most fundamental challenge for the TPP project regarding China was that "it may not constitute a powerful enough enticement to propel China to sign on to these new standards on trade and investment. China so far has reacted by accelerating its own trade initiatives in Asia."[50] In 2013, it was thought China might still be interested in joining the TPP eventually.[51] An academic analysis has shown that while the TPP would be more successful if China participated in it, the benefits to China are intangible.[52]

In October 2015, Indonesian President Joko Widodo declared Indonesia's intention to join the TPP.[53]

Sri Lanka has announced interest of joining the TPP and is currently studying its feasibility.[54][55]

Country Status 2005 agreement Status TPP Announced Interest
 Colombia Non-party Announced Interest January 2010
 Philippines Non-party Announced Interest September 2010
 Thailand Non-party Announced Interest November 2012
 Republic of China (Taiwan) Non-party Announced Interest September 2013
 South Korea Non-party Announced Interest November 2013
 Indonesia Non-party Declared Intent to Join[53] October 2015
 Sri Lanka Non-party Announced Interest[56] November 2015
Other Languages
Bahasa Indonesia: Kemitraan Trans-Pasifik