The world’s biggest multinational trade deal was signed by 12 member nations of the Trans-Pacific Partnership (TTP) in Auckland, New Zealand. The Agreement aims to create a single market system as to encourage trade and investment similar to that of the European Union. Key Highlights
- The TPP deal will cover 40 percent of the world economy.
- The TPP undertake a two-year agreement period in which at least six countries must approve the final text for the deal to be implemented.
- Its objective is to lower taxes on goods and services while regulating commercial laws for two-fifths of the world economy.
About Trans-Pacific Partnership
- TheTrans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific bordered
- It was drafted on 5 October 2015.
- The Member countries of TPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
The agreement’s aims to
- Promote economic growth
- Support the creation and retention of jobs
- Enhance innovation- productivity and competitiveness
- Raise living standards
- Reduce poverty in our countries and promote transparency
- Good governance and enhanced labour and environmental protections.
- The TPP Agreement was drafted to measures the trade barriers like taxes and mechanism to solve investor-state dispute.
- The United States governmenthas considered the TPP as an agreement to the proposed Transatlantic Trade and Investment Partnership (TTIP) similarly like agreement between the United States and the European Union.