TPP Case Study

1255 Words6 Pages
As discussed above, TPP’s primary objective is to incorporate all negotiating participants under one free trade agreement, which will eliminate tariffs and non-tariff barriers to goods, services, and agriculture. This sounds just like many other trade agreements we already have, such as WTO, NAFTA, APEC, and ASEAN. However, the U.S. still feels the need to support the TPP because they think the TPP would bring economical and geopolitical benefit in the long run, which existing trade agreements cannot provide.
First, on the global scale, we have the World Trade Organization (WTO) that has been around since 1995. While the WTO is doing a good job at enhancing the quality and quantity of trade, promoting sustainable trade development, and putting
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In an interview in 1999, Martin Khor, the director of the Third World Network and the author of Malaysian Economy: Structures and Dependence, says that the WTO is an organization dominated by powerful nations, where key decisions are usually made in informal meetings in which only a few rich countries are invited (Khor). Then, agreements are announced that poor countries did not know were being discussed. Many developing countries do not have the capacity to follow the negotiation and participate actively. This seriously disadvantages those countries from representing their interests. President Obama promises developing countries joining the TPP that their voice would be heard frequently. This indeed will help those nations to act in their best interest better than passively following the WTO’s…show more content…
NAFTA’s supporters actively argue that the agreement allows goods and money to cross borders, and thus create new jobs, businesses, and wealth for everyone involved. Similarly, TPP claims that it will open the doors for America to sell its goods and services to some fast growing markets in the world. The TPP is also expected to lower trade barriers, like NAFTA, that will encourage competitive firms to move into new markets, increase wages, cut costs, and furthermore enhance the quality of available goods and services. While both agreements share many similarities, people doubt that the TPP would be a success because after 20 years of enactment, NAFTA has proved to be a
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