Negotiation of the Trans-Pacific Partnership (TPP) agreement was concluded. GDP total of TPP participating countries accounted for about 40% of all the world (about 28 trillion US dollar equivalent), it will be the largest ever mega regional trade and investment agreements.
TPP is also politically, and economically, also to be legal, will have a tremendous impact. It means that gather attention to the Pacific Ocean throughout the region and not Asia Pacific Ocean only, importantly, this includes South America and the United States.
As shown in the official statement by the countries Trade Ministers, TPP, which is ambitious and comprehensive high level of agreement, is complex in terms of the number of its application scope and target countries, the scope of a mere free-trade agreement It is the thing which is more than. It can be said that the global value chain is a new species of the official document that is suitable for globalization world which exists myriad, and are those related to the economic governance of the target area, and has a wide range and interference nature. It is specifically mentioned for various industries, also, the general provisions are also included numerous. E-commerce and data retention, biological patent, along with the important and delicate issues such as human rights issues such as child labor and labor standards, we are also working on "traditional" trade problems in a wide range of industries. Among them, have a very important significance, is the point that provisions relating to investor-to-state dispute settlement (ISDS) has been included, this is what affects the structuring of transactions in the Pacific Ocean region.
In order to view the official statement (in English only) by countries Trade Ministers, this link please click.
In order to view the US Trade Representative (USTR) Summary of the TPP created by the (English only), this link please click.
from those TPP mean?
The full text of TPP agreement, but not yet a few weeks announced, in areas that the hub page on our firm website (English only) in "The TPP impact by sector (sectoral impact of TPP)", about what is assumed that there is a high possibility that affect each sector, we have summarized the main points.
The following is the gist thereof.
- GDP total of TPP participating countries accounted for about 40% of all the world (about 28 trillion US dollar equivalent), it will be the largest ever mega regional trade and investment agreements. And politically, and economically, also to be legal, it is not a significant impact, but, ASEAN Economic Community (ASEAN Economic Community) is established in recent years, the East Asian region, which China is participating Sometimes negotiations of Comprehensive Economic Partnership (RCEP) is started, it does not mean that the only agreement in the Pacific Ocean region.
- As a part of the factors that prompted the establishment of TPP, it is mentioned below. First, it was stuck in an attempt to establish a global free trade agreement WTO Doha Round has failed. Secondly, the "globalization" is no longer just those relating to export and import of goods and services between the two countries, and the creation of a global value chain (goods and services between many different national economy "intertwined" ones) become a thing about the duration, the appearance is that it is becoming transfiguration (Pacific Rim is a collective body in which a large number of global value chain, a number of markets intertwined crowded). Third, the driving force of the growth TPP agreement will bring, among the newly agreed sustainable development goals at the UN General Assembly in New York recently (such as poverty eradication), will help to achieve at least some of thing.
- TPP is, rather than as a "free trade" agreement, is a form of economic constitution that deal with "economic governance" in the Member States market, is the most modern ones Among the, is intended to respond to the factors mentioned above . Thus, for example, the protection of intellectual property rights, and also for the regulation method of the home market by TPP countries, I am incorporates a powerful rules. So long to sustain the global value chain, for handling and market regulation of property rights with a consistency is required, such powerful rules is important.
- TPP is intended to provide a great opportunity for companies. The company is located in a state where it is possible to seize an opportunity for market entry of emerging. Companies also will be able to more effectively manage the risks associated with cross-border investment. ISDS provisions, is important as a means to protect the provisions relating to economic governance, at the same time, it is intended to preserve the public interest in activities that affect the market regulation and the public interest. As a company, it must take advantage of the mechanisms and protective measures to be introduced is TPP.
- TPP (especially ISDS provisions) criticism that to be the interference of national sovereignty is misplaced. Thing called the Constitution, it is the fact it is the one that regulates the sovereignty of member states and would in any form. However, this nation and is of the the autonomy ambiguous border of the way, it is an inevitable consequence caused by the entanglement of globalization and regional economy, no TPP itself in the cause.
- In between participating parties, but is assumed to agreement exchange operation is performed in parallel, which, by manipulating the value of the local currency, to mitigate the impact of tariff elimination brings to their producers It is intended to address the concern that there is room. TPP but there were pros and cons in the process of negotiations about whether it should be subject to this problem, and eventually disconnected from the TPP negotiations in order to respond in the form of another agreement, currently, the Minister of Finance of the participating parties and is where the negotiations by the central bank governor has been carried out. It has not yet reached a final agreement for this agreement, but it was reported to be the ones to determine the commitment to the effect that it is not a competitive devaluation of the currency in order to create the superiority of the country exporters to the participating parties It has. However, the legal binding force of such promise, it seems to have believed it is an area still opinion is divided.
The TPP is to enter into force, each country must go through a long process of ratification of the individual TPP. This normally requires a vote in the Diet, entry into force of the TPP will be a later considerably after entering in 2016.