The Obama administration has tried to correct these past flaws in the P.P.T. Many experts believe that, as Horwitz von Third Way told me, “T.P.P. has the highest labour standards of any trade agreement,” including the right to union training and collective bargaining, minimum wage levels and restrictions on child labour. Unlike previous pacts, T.P. creates a process in which Member States that fail to meet these standards can be brought before mediation bodies and, if found guilty, be fined and deprived of their commercial advantages. It is also interesting to note that T.P.P. labour standards are being supplanted and updated in the free trade pacts previously signed by the United States with Australia, Singapore, Canada, Mexico, Chile and Peru. The TPP increases the likelihood that Japan will make economic reforms to revive its economy, which could have an economic impact on China, combined with South Korea`s possible accession to the TPP. By making the Chinese economy less competitive and making Chinese leaders less likely with respect to trade rules in East and Southeast Asia, the Chinese government will be under intense internal and external pressure to liberalize their economy. [24] Japanese Prime Minister Shinzo Abe believes that China`s future accession to the TPP would have a significant calming effect on the Asia-Pacific region. [25] U.S. Trade Representative Michael Froman said a failure to ratify the TPP would allow China to boost exports and set environmental and labour standards in the fast-growing Asia-Pacific region through the Comprehensive Regional Economic Partnership (RCEP). [180] Although the TPP has not been adopted, the agreement had already introduced forms of regulatory cooperation for agriculture that go beyond those found in the WTO.
[152] This means that regulators have come into contact and established trust among various signatories to the TPP. [152] Chad P. Bown, senior Fellow at the Peterson Institute for International Economics, argues that this regulatory cooperation has resulted in the U.S. poultry industry not being so hard hit by the 2015 avian influenza outbreak, as regulators in TPP countries cooperated and continued to accept U.S. poultry exports. [152] According to a report by The Office of the Chief Economist of Global Affairs Canada, ratification of the TPP would increase Canada`s GDP by $4.3 billion by 2040. [17] [169] This situation is mainly due to preferential access to markets in the Asia-Pacific region. [17] [169] According to the report, ratification by the other signatories to the TPP, but Canada`s failure to ratify the agreement, would lead Canada to face GDP losses estimated at $5.3 billion by 2040. [17] [169] On January 23, 2017, U.S.
President Donald Trump signed a presidential memorandum to withdraw the U.S. signature from the agreement, making its ratification as virtually impossible as it was in February 2016. [29] Many American politicians view U.S. trade agreements as complex and politically challenging agreements that can bring some economic growth and support strategic alliances. The pact was seen as a way to tackle a number of frozen problems that have become stumbling blocks as a result of soaring global trade, including e-commerce, financial services and cross-border internet communications. The U.S. International Trade Commission estimates that “the TPP would have positive effects, even if it is only a small percentage of the overall size of the U.S. economy.” [13] There will be 128,000 additional full-time jobs. [165] By 2032, U.S. real annual income would increase by 0.23%, real GDP would increase by $42.7 billion, or 0.15%, employment would increase by 0.07%, U.S. exports would increase by 1% and imports would increase by 1%.
[13] The report added that “the TPP would generally introduce trade-related disciplines that strengthen and harmonize rules, enhance security and reduce business costs for companies that act and invest