Trans-Pacific Partnership Case Study

Canada has established a clear goal towards helping businesses have long-term relationships & growth internationally and to save money. Mainly focusing on negotiating better rules/policies that will work alongside local manufacturing and exporting organizations in Canada and around the world. Canada has become willing to aim their business intentions towards working with the WTO and other countries, in efforts to overcome their global presence issues. The “Free Trade Agreement” helps Canada’s exporter and manufacturer gain a competitive advantage globally (with Europe, Latin America and other countries) by exposing them to new customers and investment opportunities (resulting in greater sales numbers). Constant focus on building a

Two of the well-known theories are absolute advantage and comparative advantage theory. Absolute advantage trade theory is when the producer is able to input a small amount to produce a good or service. It is also recognized to attain better through the acts of low-cost production. By this I mean, an example of absolute advantage is when a small country like China manufacture or produce a good and participate in the ability to have low labor cost on that item. Meanwhile, comparative advantage is the action of a country being able to produce or manufacture a good/service at a lower cost than another country. When having the theory of comparative advantage country that produces an item has an advantage over the company that has a desire for that specific item. Their ability to produce the item locally gives them a cheaper source of the ingredient causing them to offer their product cheaper than other companies. The Trans-Pacific Pacific Partnership is an agreement that has threatened to extend restrictive intellectual property laws across the world and rewrite international rules on its enforcement. Countries involved in the TPP are Australia, Peru, Japan, Canada, Vietnam, Brunei, Chile, New Zealand, Singapore, Malaysia, and Mexico. Basically, all the countries along the Pacific Ocean signed the agreement on February 4, 2016. The trade agreement is said to makes trading easier, adds intellectual property protection, and raises labor environmental standards in all countries involved, but there is no set person to write the rules and regulations to the agreement along with no one to make sure they are enforced. If the U.S doesn’t ratify the agreement, China can step in and continue to dominate and control the market. I believe if done right TPP can bring world domination for all countries to work together in creating one huge market to live by. Regional trading groups are

From past free trade treaties, critics have also argue that the “jobs and prosperity” TPP promises to bring is merely a myth. As with the North American Free Trade Agreement (NAFTA), an agreement signed by Canada, the United States and Mexico in 1994, the results of the treaty have been abysmal for the U.S.: In 1993, the U.S. had a $1.66 billion trade surplus with

The big business situation hanging in the loom for Canada is Trans-Pacific Partnership (TPP). Despite recent resolution meetings in Guam, Canada is still reluctant to finalize an agreement. Considering Canada already enjoys the benefits of low tarrifs from the flock of other countries involved with TPP (Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam) the country has shifted focus on other elements of the agreement.

North American industries are defenseless and vulnerable upon their entry into the world market. They are weak due to a variety of market challenges and economic pressures; therefore, we have to protect our young industries. For example, using protective tariffs and taxes adds costs for the foreign competitor sales process, and while it may give our young industries a chance to get started, it also tends to increase the costs of production and pricing as the industry grows. There are many possible forms of protections for young industries, all of which are designed to raise the cost of buying foreign goods and increase the profits of politically connected domestic industries. “When high tariffs are levied by

While many have argued that the TPP is now a “dead” agreement without US involvement, Canada will still receive many benefits by joining the partnership. The biggest benefit for Canada is access to Asian markets. Currently, Canada only has one trade agreement with an Asian country, South Korea. This is a hindrance, since Canada could greatly benefit from access to Asia. Another benefit for Canada is the ability to expand business and diversify from its dependence on US markets (CWF). Although the US has recently signed a trade deal with China, Canada will gain from the TPP as

The Trans- Pacific Partnership (TPP) trade agreement was outlined on November 11th, 2011. It is currently set up between nine countries. They are: the United States of America, Australia, New Zealand, Chile, Malaysia, Singapore, Vietnam, Peru, and Brunei Darussalem. The purpose of the trade agreement is to “enhance trade and investment among the Trans- Pacific Partnership countries, promote innovation, economic growth and development, and support the creation and retention of jobs (Outlines 2011).” Later on, Canada and Mexico, and Japan were invited to join the Trans- Pacific Partnership. Canada is currently in negotiations to join. However, there are viewpoints that should be addressed if Canada is to join the Trans- Pacific Partnership.

Independent studies have shown that the TPP can increase the US GDP by 0.5 percent, and the US export will be 9.1 percent higher by 2030 (Calmes). Even though the US will be the largest beneficiary of the TPP, other 11 Pacific Rim states will be benefited substantially as well (Petri and Plummer). The displacement of labor in industries that are vulnerable to external competition, due to the TPP, is less than 0.1 percent (Calmes). Besides the economic benefits, the TPP serves a political purpose of confining the increasing economic and political influence of China.

Allowing free trade to happen will allow many benefits like having larger varieties of goods and services for a lower price, growth for the economy and as well as increased exports for producers. Free trade will especially help the Trans-Pacific Partnership, a free trade agreement among 12 countries that border the Pacific Ocean. The countries included in the are: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Vietnam, and the United States.The benefits of free for this agreement include:the increase in exports, money going back to the workers while creating more jobs and prosperity, prevention of environmental abuse, and also the removal of tariffs placed on exports. According to the Coalition of Service Industries, the objective of this agreement is, “incorporate all negotiating participants under one free trade agreement which eliminates tariffs and non-tariff barriers to goods, services, and agriculture.” This countries involved with this agreement “account for 40% of the world’s trade”. When these countries make up 40% of the world’s trade, it also means that they make up 40% of the world’s GDP which equals to $107.5 trillion dollars. Consumers make up 793 million and 26% of the rest comes from the trade that they do. Where the countries are placed and the area of trade is larger than the North American Free Trade Agreement(NAFTA). The agreement doesn’t include China because the agreement wants to be able to balance the trade

One of the most important issues facing the United States is trade and whether the country is looking to partake in it. One such trade agreement that is under fire by both sides of the aisle is the Trans Pacific Trade Partnership better known as simply TPP. This agreement looks to deepen economic ties between twelve countries by cutting tariffs and deregulation*. The current countries involved includes the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. If passed, the deal will encompass around 40% of the world’s total trade. The deal covers a range of topics regarding trade with everything from environmental protections to intellectual property rights addressed in the agreement. The deal was in the works back during the time of the Bush administration and is now looking to obtain fast-track status in the US Senate in the Obama Administration. However, with the election of Donald Trump to the presidential office, the bill will be forced to pass in Obama’s lame duck year or be struck down by the president elect in his term.

The Trans-Pacific Partnership, perhaps the biggest multinational trade deal ever, is a trade partnership intended to create a block of more than 40% of the world’s economy. The deal was signed on February 3, 2016 in New Zealand. Currently, the TPP has 12 nations from the Pacific region, namely the United States, Canada, New Zealand, Peru, Singapore, Australia, Japan, Brunei, Chile, Malaysia, and Vietnam (Office of the US Trade Representative, 2016). As intended, these nations represent about 40% of the global economic output and 26% of world trade.

“The Trans-Pacific Partnership is an Asia-Pacific regional free trade agreement currently under negotiation between the Unties States and about a dozen countries surrounding the Pacific Ocean” (Weddle, 2013). It’s a giant free trade deal that has been in the process of negotiation for about a decade. The ultimate goal of the deal is to join countries together through a unified agreement and make free trade among these counties smooth and painless. The trade agreement covers everything from tariffs to standards for food safety.

In Canada today, we believe there are about 140,000 companies that are either already exporting or, what we would consider, “Ready to Export.”

Governments have been known to create risk and cost to international business through the implementation of policies, laws and regulations. While the World Trade Organisation (WTO) has policies in place to discourage governments around the world from implementing protectionism, the growing need to have a trade surplus is seeing the theory again becoming favourable (Maier, 2008). The theory of protectionism refers to governments introducing tax on imports in order to shield a country 's domestic industries from foreign competition (Belianin, 2002). While a nation’s government can be credited for endeavouring to protect their domestic industries, they can also be blamed for increasing the cost of a nation doing international

According to the trade policy reviews conducted by the World Trade Organization, more than 70% of the exports of the Philippines consists of electronics, automotive products and garments. Within four years, the number of exports have shown to increase by 7%. Despite having a large market of exports, these markets are mostly owned by foreign companies such as the United States (35% in 1997), the European Union (16% in 1997) and Japan (16% in 1997). Thus, the economy and the people of the Philippines do not gain as much as the market owners from the other countries. However, the three countries listed previously also provides most of the imports of the Philippines. Policies regarding tariffs forced a more open economy because tariffs were reduced as well as non-tariff barriers were removed. There are still remaining policies to protect markets that are import substitution led creating more of a competition with export markets. Despite creating a more open economy to foreign investment, there are still some barriers that exist to protect domestic markets that practice import substitution (World Trade Organization).