Negotiating the Trans-Pacific PartnershipPosted: 06/09/2012
The latest IISS Strategic Comment examines the negotiations behind a new free-trade agreement in the Asia-Pacific, which could become ‘the most far-reaching economic agreement since the World Trade Organization was established’. The Trans-Pacific Partnership (TPP), as it is known, could eventually unite at least 11 economies in two of the world’s most dynamic regions, East Asia and the Americas.
Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam together constitute nearly 30% of the world’s gross domestic product, and Japan – the world’s third-largest economy – may join in the future.
But opinions on the TPP are divided, as the article explains: ‘On the one hand, it could serve to strengthen strategic relationships among regional states, and to reassure Asian countries about Washington’s commitment to the region. However, it could also be interpreted as the economic complement to the US military’s ‘rebalancing’ to Asia and as an attempt to contain China.’