TPP’s Few Benefits
The United States is the key member of the TPP. Its gains would mostly derive from its large agricultural industry, allowing them to significantly increase their exports. However, its economic growths are estimated to be 0.4%, which is not as significant as the other members states. Moreover, the presidential election caused a big shift in the standing of the United States on TPP.
The major gain for Japan is in the automobile industry. As the tariffs become lower, exports for the automobile industry are estimated to increase by: However, concerns lie in the agricultural market. The large market of the United States will create an inflow of low priced agriculture. This will threaten the local food market due the to high competition. Asian countries are more strict on food regulations compared to the North American and Latin American regulations. Thus, another major concern lies in the difference between non-tariff measures and the food production regulations.
Similar to the United States, Canada also has major benefits in trade liberalization of agriculture. Its primary growth potential lies in beef and dairy. Additionally, alcohol such as ice wine is thought to have growth in exports. As Canada already has FTA’s with the United States its major benefits will come from the ties with Japan. Canadian consumers will be capable of buying automobiles at a lower price. However, many echo former Prime Minister Stephen Harper’s view regarding concern for the local markets.
Singapore is one of the founding members of the TPP. As one of the major ports for international shipping and trade the economy is largely based on foreign trade. The expansion through this agreement will increase Singapore’s external trade significantly.
However there were costs.
The TPP will introduce regulations in regards to international immigration, which will lower barriers for international cooperations across borders and expand their business. Such change include the ability to mobilize workers across countries. This indicates the ability for major corporations to bring and occupy labour forces in different countries. As a result, foreign workers in the member states are projected to increase, causing concern for a growth of unemployment due to increased domestic competition for jobs.
As the United States election has resulted in a shift in the standing of the US towards TPP, many leaders are questioning the likelihood of TPP to be ratified
by all countries. Most importantly, Donald Trump has already stated that he “will kill the TPP trade deal” once he is in office. In response to his statements, many leaders of the TPP countries are already showing concern. The Japanese Prime minister Abe Shinzo has expressed his doubts about the prospects of the TPP without the United States and identified it useless and unbeneficial.