Post 1; Discuss TPP since U.S. will not participate. Discuss the effect of this to the world economy In 2006, the TTP agreement began with just four countries Brunei, Chile, New Zealand and Singapore. The agreement “removed tariffs on most goods traded between the countries, promised to cut more and also to co-operate on wider issues such as employment practices, intellectual property and competition policies”(BBC, 2017). The United States is a country that did not re-signed the Trans-Pacific Partnership trade pact. President Trump agreed to abandon TTP once elected. The countries that signed are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. These countries bordering the Pacific Ocean, contribute to 40% of the world’s economic output. The objective of the pact was to expand on the ties of the 12 countries including the United States, signed in February 2016. It would be removing most tariffs and promote trade to increase growth. In addition, members wanted to establish a tight bond amongst each other on economic policies and regulation. The TTP was established to create a new single market, something similar to the European Union. However, Trump and many others did not agree with the pact. They believed that the TPP has cost the United States jobs and that it would open the door for companies to sue governments that change policy on health and education to favor state-provided services. The United States removing its self from the pact probably will discourage other nations to not sign. The United States is a country that accounts for at least 75% of the 12 nations economic output, without them participating the deal can no longer be Post 2; Discuss TPP since U.S. will not participate. Discuss the effect of this to the world economy The Trans-Pacific Partnership (TPP) is a trade agreement between twelve countries bordering the Pacific Ocean. Those countries being: The United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement was made to strengthen economic relations between the countries by cutting tariffs and therefore increasing trade to foster growth. The agreement was signed in February 2016 but has yet to be enforced because all countries need to ratify it before it can take effect. In addition to this, when Trump took office, he decided to pull the US from the agreement. Without the US, the deal could no longer move forward as is as it required six countries that account for 85% of the group's economic output in order to take effect. The impact of the US pulling out had negative impacts on some countries, but also affected some positively. Negatively affected Singapore: This small island in Asia has the biggest port in the region and relies upon trade heavily for the growth of its economy. It was hoping to benefit from an increase in trade and shipping from more regional and global trade. Vietnam: This country would have benefited most from TPP due to it still being a relatively closed economy. The TPP could have given it free access to rice, seafood, textiles and other goods that would have assisted in the growth of its economy. It is estimated that the country could have seen a 10% growth by 2025 had the TPP been successful. Malaysia: Estimates have also shown that Malaysia, like Vietnam, could have seen up to a 5.5% in growth by 2025 because of the agreement. Positively affected China: With the US out of the way and the TPP's fail, China could step in and fill the void by creating a pact that would allow free trade across the same borders and strengthening its position in the region. Mexico: Some have said that the US' withdrawal from the TPP could free up Mexico's alliance on the US for trade and allow the country to enter some trade deals with other countries. Analysts say, the withdrawal of the TPP could potentially result in a trade war between the U.S. and China with both countries boycotting the others' products. If this transpires, this could have tremendous effects on the impacts of both economies and have consequential effects on countries in Europe, Asia, and across the globe. Despite all of this, since Trump's withdrawal in 2017, this year he has stated that he would be willing to rejoin forces to ratify the TPP if a much better deal was brought forth. Senate Republicans have been pushing for the President to rejoin TPP as they see it as an opportunity to strengthen ties with the allies in the region, combat China's influence in the region, pressure Beijing to make substantial economic reform and move to modernize trade with Canada and Mexico
Purchase answer to see full attachment