You may have heard of Trans-Pacific Partnership (TPP) since it is considered as one of the biggest multinational trade agreements. This massive deal involves 12 countries, including United States, Canada, Mexico, Peru, Japan, Australia, New Zealand, Malaysia, Singapore, and Vietnam. Have you concluded a stance against this economy-based joint? Do you support the Trans-Pacific Partnership, or do you think it actually impacts the economy negatively? The breakdowns of advantages and disadvantage of TPP below might help you to build an opinion over this matter.
Do You Support the Trans-Pacific Partnership By Considering Its Pros and Cons?
Trans-Pacific Partnership is an extensive level of deal with a purpose to deconstruct trade and investment barriers (both tariff and non-tariff) amongst the participated countries. It aims to construct streamlined regulations and implement shared standards upon protection of investment and intellectual property from foreign countries as well.
Due to its extremely unique standards and approaches, TPP is seen as a sensational achievement within the joined countries. It includes not only employees’ rights, but also regulatory coherence and protection of environment. Moreover, it involves protections for particular industries in few countries.
The question and discussion of do you support the Trans-Pacific Partnership often comes up currently, but the answer mostly depends on your type of job. Some supporting opinions say that it will open opportunity of high-tech industries such as finance and banking companies, while some opposing contentions point that it leads to job loss in manufacturing industries, as reflected from North America Free Trade Agreement. To help you set clearer idea about this deal, here are some positive and negative effects of TPP.
- It increases spending power of more individuals
If the agreement went into the right direction, then it’s expected to add more than $220 billion to the worldwide economy. It includes collateral benefits such as increasing job fields, extra revenues from sales tax, and higher living standards globally.
- It lessens tariffs’ influence on international trade
The purpose of TPP is to prepare bigger markets for free trade opportunities. There will be extra chances of participated countries to develop their economy by reducing tax during buying process. The general impact of international market will be able to compensate damage by gaining expanded targeted markets.
- It promotes economy growth at various levels
The most benefitted industries of the implemented TPP will be agriculture, machinery manufacturing, plastics productions, and automotive constructions. it is because they gain more available access to the joining countries outside the area of Asia Pacific. The developing commerce across the world means that there are also more available chances for average workers.
- It may promote rich people to get even more rich by sacrificing the poor people
If you examine the advantage of Trans Pacific Partnership closely, you’d find that this deal boosts extra earnings for people who are able to get over $90k annually. A lot of workers at rural area in developing countries are surviving with wage lower than $2.5 a day – that makes them have no chance of accessing market profits that promised by TPP in the first place. While it’s true that macro economy will be improved by job creation, it will impact average workers in middle and lower class in more undesirable way due to the shift in employment methods.
- It mostly benefits American countries participants compared to others
Trans Pacific Partnership covers approximately 40% of the entire worldwide export market value by involving 12 participants. However, nearly 30% of its economic advantages are impacting United States alone. The advantages wouldn’t pose similar exclusion compared to benefits of tariffs or free trade, so it means that the deal was quite one-side heavier. Trans Pacific Partnership provides more controls for United States to manage economic standards – a benefit that’s not available for other joined countries.
After reading about the biggest pros and cons of this particular deal above, you might already be able to answer do you support the Trans-Pacific Partnership? You may also possibly have had a better idea on where your country stands upon this deal. It is an agreement that can be said as one of the most massive shake-ups during this generation regarding global trade. The provided benefits and drawbacks show that there are available chances to build economic growth under the right stimulus and condition.