TPP (Trans-Pacific Partnership)

Definition

The Trans-Pacific Partnership (TPP) was a proposed free trade agreement between 12 countries bordering the Pacific Ocean, aimed at lowering tariffs and establishing common rules for trade and investment. The TPP was intended to promote economic growth and integration among the participating nations, with potential implications for global stratification and inequality.

5 Must Know Facts For Your Next Test

1. The TPP was negotiated between 12 countries: the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru.
2. The TPP aimed to eliminate or reduce tariffs on a wide range of goods and services, including agriculture, manufacturing, and digital trade.
3. The agreement also included provisions for intellectual property rights, investment disputes, and labor and environmental standards.
4. The TPP was seen as a counterweight to China's growing economic influence in the Asia-Pacific region.
5. The United States withdrew from the TPP in 2017, and the remaining 11 countries later signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Review Questions

• Explain how the TPP was intended to impact global stratification and inequality.
  • The TPP was designed to promote economic growth and integration among the participating countries, which could have implications for global stratification and inequality. By lowering tariffs and establishing common rules for trade and investment, the TPP aimed to increase access to international markets and encourage the flow of goods, services, and capital across borders. This could potentially create new economic opportunities and help reduce disparities between developed and developing countries within the TPP region. However, the distribution of the benefits from the TPP would depend on factors such as the relative bargaining power of the participating countries, the ability of different sectors and populations to adapt to the changes, and the potential for the agreement to exacerbate existing inequalities or create new ones.
• Analyze the potential role of the TPP in the broader context of globalization and its impact on global stratification.
  • The TPP can be viewed as a manifestation of the broader process of globalization, which has been characterized by increased economic integration, the expansion of international trade and investment, and the growing interdependence of national economies. In this context, the TPP could be seen as an attempt by the participating countries to shape the rules and dynamics of globalization in a way that aligns with their economic interests and strategic priorities. The potential impact of the TPP on global stratification would depend on how the agreement affects the relative power and influence of different countries, industries, and social groups within the global economic system. For example, the TPP's provisions on intellectual property rights, investment disputes, and labor and environmental standards could have differential effects on developed and developing countries, as well as on multinational corporations and local businesses, potentially exacerbating or mitigating existing inequalities.
• Evaluate the role of protectionism in the context of the TPP and its potential implications for global stratification and inequality.
  • The TPP was designed to reduce tariffs and other trade barriers, which can be seen as a departure from protectionist policies that aim to shield domestic industries and workers from foreign competition. However, the agreement also included provisions that could be interpreted as a form of strategic protectionism, such as the intellectual property rights and investment dispute settlement mechanisms. These provisions could potentially benefit multinational corporations and industries in the more developed TPP countries, while posing challenges for smaller businesses and industries in less developed countries. Additionally, the withdrawal of the United States from the TPP and the subsequent signing of the CPTPP by the remaining 11 countries could be seen as a shift towards more protectionist policies, with potential implications for the global distribution of economic power and the dynamics of global stratification and inequality. The complex interplay between free trade, protectionism, and their impacts on global stratification and inequality is an important area of analysis in the context of the TPP and the broader trends of globalization.

Related terms

Free Trade Agreement: A treaty between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders with little or no tariffs or non-tariff barriers.

Globalization:

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.

Protectionism: The economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations.