What are the macroeconomics of the Trans Pacific Partnership

The Trans-Pacific Partnership Agreement (TPP), also known as the "Economic NATO.""。Formerly known as the Trans-Pacific Strategic Economic Partnership Agreement (P4), it is a group of free agreements on multilateral relations initiated by New Zealand, Singapore, Chile and Brunei, which are members of the Asia-Pacific Economic Cooperation (APEC) member states, and has been brewing since 2002. On November 10, 2011, Japan officially decided to join the TPP negotiations, while Chinese mainland did not apply to participate in the TPP negotiations.

On September 10, 2013, South Korea announced its accession to the TPP negotiations. The Trans-Pacific Partnership (TPP) will break away from the traditional FTA model and create a comprehensive FTA that includes all goods and services. On November 25, 2013, ** said it would facilitate an agreement on the Trans-Pacific Partnership (TPP) agreement in 2013.

On February 4, 2016, 12 countries2 from the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam signed the Trans-Pacific Partnership (TPP) agreement in Auckland.

Basic Information. Chinese name: Trans-Pacific Strategic Economic Partnership Agreement.

English name: trans-pacific partnership agreement

Sponsor countries: New Zealand, Singapore, Chile, Brunei.

Major countries: United States, Japan.

History. On May 28, 2005, Brunei, Chile, New Zealand and Singapore launched the Trans-Pacific Partnership (TPP), an economic and trade agreement signed and entered into force, in which members pledged to give each other preferential treatment and strengthen cooperation in the fields of goods, services, intellectual property rights and investment. The core of these is tariff reduction, which means that 90% of the tariffs on goods in member countries will be immediately waived, and tariffs on all products will be 12 years.

Waiver. The protocol takes an open mind and welcomes any.

APEC members participate, and non-APEC members can also participate.

For example, there are many high-standard clauses in environmental protection, labor, origin and procurement. As an important platform for Asia-Pacific economic integration, TPP is still essentially in the FTA category, but its agreement content and standards significantly exceed the level of the existing FTA. The "high standards" of the TPP are, to a large extent, a reflection of the United States' concept of freedom and its strategic interests.

First of all, in the field of goods, it is required to finally achieve zero tariff on all goods; In the field of services, a relatively liberal approach of "pre-establishment national treatment + most-favored-nation treatment + exception clause" has been adopted, that is, pre-establishment national treatment and most-favored-nation treatment are granted to all service sectors, and only a few special service industries such as national defense, finance, and aviation are subject to exception clauses. Moreover, the "negative list" model is adopted in the fields of services**, financial services, and investment. Second, in the field of intellectual property, the standards proposed by the TPP in terms of geographical indicators, copyright protection, anti-circumvention liability, patent protection, drug pricing, etc., are also significantly higher than those of the WTO's Agreement on Intellectual Property Rights Related to ** (TRIPS).

Taking pharmaceutical patent protection as an example, the United States initially wanted to grant 12 years of patent protection for biologics during the TPP negotiations, but was opposed by other contracting parties, and finally had to compromise to shorten the protection period to 8 years. Contracting Parties such as New Zealand were of the view that excessive protection of patents could hinder innovation and generic drug production and undermine the interests of developing countries within the TPP. Third, the TPP agreement has specially added labor and environmental provisions, which are linked to the United States, and by imposing higher labor and environmental standards on other countries, it will help the United States to impose sanctions on the export products of other member countries, especially developing countries, in order to achieve the purpose of safeguarding its own interests.

Fourth, the TPP agreement also includes a separate chapter for state-owned enterprises, advocating the abolition of policy support, financial subsidies and other welfare benefits for state-owned enterprises, including preferential financing measures for overseas investment of state-owned enterprises, protection of foreign private enterprises' economic activities, and revocation of preferential preferences for procurement. These rules may not have a significant impact on existing member states, but they will be difficult for China, with its many state-owned enterprises, to bear in the short term.