Throwing the dice: Trans-pacific Partnerships (TPP)

Throwing the dice: Trans- Pacific partnerships (TPP)

This piece postulate questions in itself, hoping to provoke thoughtful insights.

As part of the Obama administrations trade policy initiative, last year twelve countries namely the U.S.A., Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile, and Peru got together to conclude negations on the Transpacific Partnership (TPP) free trade agreement (TFA). The TPP agreement was signed early this year and is yet to enter into force. The aim of the TPP is to liberalize, establish rules, discipline governing trade and investment among its members.

While President Obama views this initiative as strategic, his citizens have demonstrated fear of this new ‘strategic’ agreement. Fear that the jobs meant for the U.S.A will migrate to developing countries. Ironically, as a citizen of a developing country, I, too assert fear. Ironically, same fear, fear of trade exclusion and loss of opportunities to create jobs in countries that are not a party to the TPP agreement. Let’s hope my fears, for my country Namibia, will be resolved by the implementation of the EU’s Economic Partnership Agreement (EPA)-African-Caribbean-Pacific partnership, which has drawbacks on its own (a plate for another day)!

Visible from the list, the TPP agreement comprises mostly of Asian countries, surprisingly China is not a party to the TPP agreement. In fact, China is an opponent of it. By now, the whole world knows that China is the second largest economy in the world. Having grown faster than the U.S.A. did as a trade partner for majority of the Asian countries. Could the TPP be another power battle between China and the U.S over the crafting of commerce and diplomacy rules?

Opponents of TPP view the TPP agreement as another U.S.A. endeavor to maintain its leadership and influence in the Asia-Pacific region protecting its interests and modern commercial realities.

One may be wondering, but how can the U.S.A. do this? if members to the TPP are independent sovereign States on their own? subject to own laws and regulations? You may also be aware that these agreements come with compliance and enforcement mechanisms right?

While such questions seem like a dice thrown in the field. I am more concerned that the TPP may become a building block to other countries, specifically to developing countries. The TPP does not necessarily remove all trade barriers amongst its members. However, this mega-regional agreement places other developing countries on a marginalized level. In a way, the TTP also seem to undermine the Bilateral System under the World Trade Organization (WTO) by creating mega-regional agreements.