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Disputed Trans-Pacific Partnership (TPP) Agreement inked by 12 Pacific Rim countries

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After the 5 years of crucial talks 12 Pacific Rim countries have inked the major TPP agreement by creating the world’s largest free trade area. It has been signed after 5 days of talks in Atlanta, US and will now have to be approved by the lawmakers of each country.

  • Deal aimed at to cuts trade tariffs and to set 21st century common standards in trade and investment for 12 Pacific Rim countries.
  • The deal covers about 40% of the world economy.

Disputed Trans-Pacific Partnership (TPP) Agreement inked by 12 Pacific Rim countries

12 PACIFIC RIM COUNTRIES SIGNED TPP
(Pacific Rim – Those are situated around the edge or rim of Pacific Ocean)

Member Countries Capital Currency
Australia Canberra Australian dollar
Brunei Bandar Seri Begawan Brunei dollar
Canada Ottawa Canadian dollar
Chile Santiago Chilean peso
Japan Tokyo Japanese Yen
Malaysia Kuala Lumpur Malaysian ringgit
Mexico Mexico City Mexican peso
New Zealand Wellington New Zealand dollar
Peru Lima Peruvian nuevo sol
Singapore Singapore Singapore dollar
United States Washington, D.C. United States Dollar
Vietnam Hanoi Vietnamese dong

UNDER THIS DEAL

  • Japan has opened its market with concessions to major food exporters such as Australia, New Zealand and the United States.
  • The US will decrease its tariffs on Japanese car parts from non-TPP locations like China and Thailand.
  • Canada opens its market for dairy products from New Zealand
  • Australia and Canada get higher sugar quotas in the United States.
  • Elimination of around 18000 taxes on American goods.

WHAT IS TRANS- PACIFIC PARTNERSHIP?
The Trans-Pacific Partnership (TPP) is a trade agreement between Pacific Rim countries related to economic policy issues. It seek to lower trade barriers tariffs, establish a common framework for intellectual property, enforce standards for labour law and environmental law, and establish an investor-state dispute settlement mechanism.

CRITICISM

  • It’s not only a trade deal agreement, the intellectual property section would implement laws that effects users freedom of expression, right to privacy and due process and hinder peoples abilities to innovate.
  • Deal is negotiated under deep secrecy and public interest is kept aside. It is highly criticized by Public health advocates, environmentalists, and labour groups.