With a collective population of 800 million, twelve Pacific Rim countries have signed the Trans-Pacific Partnership (TPP) after holding talks for five years. The countries include the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
Some called the TPP a game changer. That’s because the trade deal is one of the most ambitious free trade agreements ever signed. It aims to strengthen economic ties among them by cutting tariffs and boosting business, and it could create a single market like that in Europe. Member countries are also hoping to foster a closer relationship on economic policies and regulation.
However, opponents said the agreement could leave to potential job migration to developing countries where labor cost is lower and it might pave the way for companies to sue governments that change policies. US presidential hopeful Hillary Clinton said the agreement left many unanswered questions and did not meet the high bar she had previously set.
As China is not involved in the closed-door negotiations, some said the deal is a counter balance to China's growing economic influence in the Asia Pacific region or a “gambit” to keep China at bay. China said it was "open to any mechanism" that follows World Trade Organization rules. Japanese Prime Minister Shinzo Abe said the deal signified the dawn of a "new Asia-Pacific century", but he said it would have strategic meaning if China joined in the future. However, US President Barack Obama said if he does not take the lead in setting the rules of trade, then China will.
An economist with the Chunghua Institution for Economic Research, Ku Ying-hua, said as the 12 TPP member countries account for 35% of Taiwan’s trade volume, the trade deal signals the beginning of challenges facing Taiwan. Ku said Taiwan’s determination to push for trade liberalization is crucial to Taiwan’s bid to join TPP. Ku also said cross-strait relations are also a key as China is the second largest trade partner of 11 TPP signatories, except for Brunei.
President Ma Ying-jeou and several Taiwanese officials said the government will continue pushing for its bid to join the TPP.