There has been a lot of policy talk and agreements flown in our direction this election season and for the common person, it’s hard to keep up with these terms. Three letters that stand out the most are TPP, or officially known as the Trans-Pacific Partnership. Here is everything you need to know about the TPP.
- There are 12 members of the TPP: United States, Canada, Australia, New Zealand, Japan, Mexico, Singapore, Brunei, Chile, Peru, Vietnam, and Malaysia.
- It covers roughly 40% of the world’s economy and a population of about 800 million.
- President Obama treated trade deals as a priority, but U.S. opponents have characterized the TPP as a secretive deal that favored big business and other countries at the expense of jobs and national sovereignty.
- The twelve countries’ goal is to deepen economic ties between each other, slashing tariffs and fostering trade to boost growth.
- It is designed to potentially create a new single market, something like that of the EU.
- Most goods and services traded between the countries are named in the TPP, but not all tariffs – which are taxes on imports – were going to be removed and some would take longer than others. About 18,000 tariffs are affected.
- It came into affect in 2006
- It is seen as intensifying competition between countries’ labor forces.
- Japan’s Prime Minister Shinzo Abe has said the TPP would be meaningless without the United States, which has a market of over 250 million consumers.