More of a Competitor Than a Trade Partner?: The Trans-Pacific Partnership and Its Implications for Trade Relations

More of a Competitor Than a Trade Partner?: The Trans-Pacific Partnership and Its Implications for Trade Relations

Copyright: © 2018 |Pages: 18
DOI: 10.4018/978-1-5225-4131-8.ch010

Abstract

As well as considering the rationale for the Trans-Pacific Partnership, and the reason for the withdrawal of the United States, this chapter seeks to consolidate on the wage and unemployment argument that the problem is a shortfall in demand. Further, the chapter seeks to address questions such as whether downward wage rigidity constitutes a problem.
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Introduction

In times past, it used to be the case that leading economic nations were united by statements involving national delicacies and even donuts. However, signs of growing rifts and shifts in economic, trade and diplomatic relations are not only being evidenced by the recent conclusion of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, but also the current state and prospects of the Trans-Atlantic Trade and Investment Partnership (TTIP) – which is currently being negotiated between the United States and the European Union – as well as the Trans Pacific Partnership (TPP) – an agreement between the United States and eleven other nations which are pre dominantly located within the Asia Pacific region.

Whilst the Trans-Pacific Partnership generates – as well as presents more controversial debates than other trade agreements, it is certainly without doubt, the most significant deal being negotiated in recent years – also in comparison to other World Trade Organization agreements. China’s notable absence from the TPP may have generated and contributed to controversies around the Agreement – however, it is also most certain that a conclusion and ratification of the TPP by the United States is crucial to preserving amicable trade and diplomatic relations with China.

Hence in addition to highlighting the benefits of free trade agreements, this paper, a highly condensed version of its published version, serves to underline why the Trans Pacific Partnership may represent the best chance of mitigating or averting apparent or potential diplomatic rifts between global and economic leaders – not only from the perspective of the currently concluded Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, but also from the perspective of the Trans-Atlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP).

Comprehensive Economic and Trade Agreement, Trans-Atlantic Trade and Investment Partnership, Trans-Pacific Partnership, The Trade Promotion Authority, Corporate Social Responsibility

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