TPP

Definition

The Trans-Pacific Partnership (TPP) is a multilateral trade agreement that was negotiated between 12 countries bordering the Pacific Ocean, with the goal of promoting economic growth and liberalizing trade in the region. It is a key term in the context of categorizing public policy and defining foreign policy.

5 Must Know Facts For Your Next Test

1. The TPP was originally signed in 2016 by 12 countries: the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru.
2. The TPP was designed to promote economic growth, support higher-paying jobs, enhance innovation, and provide new opportunities for workers and businesses.
3. One of the key goals of the TPP was to establish common rules and standards for trade and investment in the Asia-Pacific region, thereby facilitating economic integration.
4. The TPP was intended to address a wide range of trade-related issues, including tariffs, services, investment, government procurement, intellectual property, and labor and environmental standards.
5. The United States withdrew from the TPP in 2017, and the remaining 11 countries subsequently signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as the TPP-11.

Review Questions

• Explain how the TPP relates to the categorization of public policy.
  • The TPP is a prime example of a trade policy, which is a type of economic policy that falls under the broader category of public policy. Trade policies, such as the TPP, are government-level decisions and actions that aim to regulate the flow of goods, services, and investments between countries. The TPP's focus on reducing trade barriers, promoting economic integration, and establishing common rules for the Asia-Pacific region demonstrates how it is a significant public policy initiative that can have far-reaching implications for businesses, workers, and consumers across multiple countries.
• Describe the role of the TPP in the context of defining foreign policy.
  • The TPP is a key component of a country's foreign policy, as it represents a strategic economic and diplomatic initiative to deepen economic ties and cooperation with other nations in the Asia-Pacific region. Foreign policy, which encompasses a government's approach to international relations and global affairs, often includes trade agreements like the TPP as a means of advancing a country's economic and geopolitical interests. The TPP's potential to shape trade patterns, investment flows, and regional economic integration makes it a significant foreign policy tool for the participating countries to project their influence and pursue their national interests on the global stage.
• Analyze how the withdrawal of the United States from the TPP and the subsequent formation of the CPTPP (TPP-11) have impacted the categorization of public policy and the definition of foreign policy.
  • The withdrawal of the United States from the TPP and the formation of the CPTPP (TPP-11) have had significant implications for both the categorization of public policy and the definition of foreign policy. From a public policy perspective, the TPP-11 represents a shift in the landscape of economic policies, as the remaining countries have had to recalibrate their trade and investment strategies without the participation of the world's largest economy. This has required the TPP-11 countries to reevaluate their policy priorities and the potential impacts on domestic industries and consumers. In terms of foreign policy, the CPTPP has become a key instrument for the participating countries to strengthen economic ties and cooperation in the Asia-Pacific region, potentially altering the geopolitical dynamics and power balances in the area. The absence of the United States has also opened the door for other global powers, such as China, to potentially play a more prominent role in shaping the regional economic and diplomatic landscape.

Related terms

Multilateral Trade Agreement: A trade agreement between multiple countries or economic blocs, typically aimed at reducing tariffs and other trade barriers.

Trade Liberalization: The process of reducing or eliminating trade barriers, such as tariffs and quotas, to promote the free flow of goods and services between countries.

Economic Integration: The process of unifying different national economies into a larger regional economic bloc, often through the elimination of trade barriers and the harmonization of economic policies.