Trans-Pacific Partnership

Challenges and Prospects

Presented ByGroup 2

APEC

Prospects

The region is of great economic significance to the world, with• Some of the fastest growing economies• That produce over 50% of the world’s GDP total• Home to more than 40% of the world population

Numerous opportunities to the trading partners because of the expanding consumer markets, and high return on investment

TPP member states encompasses great diversity: different stages of economic development, natural resources and production focusses

Mutually beneficial trade motives

Prospects

TPP could make a contribution to liberalizing trade in goods and services: By opening markets • b/w those partners who do not yet have a bilateral

deal between them• in those limited areas in industrial or non-

agricultural goods where trade liberalization has not yet occurred or has been limited

• by untangling the so-called “Spaghetti Bowl” of PTAs

Spaghetti Bowl

Challenges

• USA dominance in TPP rules• Exclusion of China• Market Access, Rules of Origin, Tariff Schedule– to have a single schedule that would apply to all countries; – to have each country prepare its own market access

schedule following negotiations with others; or– to combine the two options and have a uniform schedule

for tariff reductions for non-sensitive products and separate schedules for sensitive ones.

• Structure of PPP• Lack of Transparency

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