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The Pros And Cons Of The TPP

1312 Words6 Pages

The Trans-Pacific Partnership, also known as the TPP, is a trade agreement integrating economic policies among the following twelve countries who surround the Pacific: Brunei, Chile, New Zealand, Singapore, Australia, Canada, Japan, Malaysia, Mexico, Peru, United States of America and Vietnam. Essentially, the TPP will create a free-trade zone among these countries, who, most notably account for approximately forty percent of the worlds economic output. The goal of the TPP is to increase economic growth, by economic policies that will eliminate government intervention in terms of tariffs and trade barriers, promote innovation, productivity and competitiveness. The hope is to create a large economic integration, that promotes globalization …show more content…

Its agreement is as follows; Canada has agreed to provide TPP members duty free access up to 3.25 percent of its dairy market. Moreover, Canada has also agreed to permit TPP members duty free access to 2.1% of its poultry market. As many TPP partners pushed the Canadian’s dairy concessions away, this leaves the door open for the remaining 11 countries (part of the TPP) to seize opportunity in Canadian markets as Canada failed to protect its home industries. As a result, Canada has committed to pay about 4.3 billion dollars over the next 15 years to dairy, chicken and egg farmers affected by the TPP. Moreover, Canada has also agreed to pay farmers who are affected by Canada’s free-trade deal with the European Union, as this too can greatly affect Canadian dairy farmers. Thus, although Canada had to provide TPP members with susceptible access to it’s dairy sector, Canada fought against opposing countries demands, conceding to many request, yet also providing the farmers with financial support as a reparation. Canadian exporters will seize a competitive advantage to those countries that did not partake in the TPP. This will help the Canadian exporters as they won’t need to pay tariffs, like their rivals will. This is extremely vital for Canadian exporters, as China did not join the TPP negotiations, thus, leaving Japan (3rd ranked in GDP) with easier, and improved

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