M2D1: TRANS-PACIFIC PARTNERSHIP 1

M2D1: Trans-Pacific Partnership

After completing the reading and watching the video in this module, answer the following:

Provide the top three pros and three cons for the TPP. Explain why you feel each pro/con is

significant enough to warrant discussion within the congressional committee.

Analyze the TPP using one of the trade theories explored in this module. You should

specifically address whether the TPP would violate any of the theories key aspects.

Provide your recommendation and rationalization to the Committee, on whether the U.S.

should sign on to the TPP. Assume that the U.S. has not yet decided whether to join or not.

When responding to at least two classmates, assume you are a member of the committee,

and explain, using relevant theories and data, why their choice on whether the U.S. should

join the TPP is or is not a wise decision. You must support your response to your peer with

well-researched information (i.e. not just opinion).

The Trans-Pacific Partnership is a trade policy comprising of an agreement to support

cooperating and trading activities between various countries across the Pacific. These countries

include the United States, Singapore, Japan, Malaysia, New Zealand, Mexico, Peru, Canada,

Chile, Brunei, Australia, and Vietnam. The trade pact as well faces intense opposition from some

of the member states with the question of its relevance in the protection of the national interests

of respective member states (Ravenhill, 2016). For example, the United States President Donald

Trump made it clear to fail in measures taking part in the TPP agreement with January 23, 2017,

signing an executive order to withdraw the US from the agreement.

Pros
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In support of the pros of the TPP agreement, there are profound benefits that come to the

respective states being a member. As one of the largest international trade cooperation pact, the

TPP agreement presents an opportunity to significantly reduce, as well as, eliminate close to

18,000 tariffs currency placed on the U.S. exports (Delaney, 2017). In turn, this improves the

trade between the U.S. and other nations by easing the approach they take and reducing the

trading costs. Hence, citizens have an opportunity to access cheap commodities in a diverse

scope of various products.

The second pro asserts of the reduced regulatory complexity as the agreement promises

to ease the risks and costs of partaking in business transactions across the borders of respective

countries. In turn, this presents small business with a profound opportunity to expand their

business with minimal customs administration, and high tariffs occurred.

Thirdly, the TPP agreement assures of the Intellectual Property (IP) protection. By easing

IP protection regulation, this presents a grand opportunity for the U.S. small businesses to stretch

their operations overseas under the same trademarks, patents, as well as, copyrights. In turn, this

intensifies the opportunity of doing business present an increase of the revenue income for the

U.S.

Cons

Irrespective of the profound positive implications the TPP presents to the respective

member countries, and there also a sound basis of criticisms. Those against the trade agreement

point at the potential risks associated with the implementation of the TPP. First, there are fears of

the impacts of the agreement towards various products and services in the country (Hafbauer,

2016). This poses a risk of contraband goods and services flooding the U.S. markets due to lack
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of strict regulation posing a significant threat to local manufacturers especially in the medicine

and generic drugs production.

Secondly, to the United States, the TPP agreement risks empowering foreign corporations

flooding domestic courts and policies with pose a significant challenge to the already existing

healthy business environment and public interests.

Thirdly, the TPP functioning lacks outright transparency posing a dark cloud of ensuring

accountability to the critical business decisions ready for implementation by respective member

countries.

Trade Theories

According to Ravenhill (2016), the TPP trade theories follow the multilateral regionalism

approach as the new trade theory whereby the domestic determinants provide the analysis of the

steps taken by the member countries. The national interests are the cause and steering facts of the

regionalism trade theory approach (Capling & Ravenhill, 2011).

Recommendations

The U.S. consideration to signing the trade pact should be informed by extensive research

of the experience of the U.S. and member countries. The recommendation to sign the agreement

should only follow when the member countries agree to certain measures as the U.S. is the major

trading partner with extensive markets. As well, it is essential for the country to sign the

agreement as it favors small businesses giving them an opportunity to expand extensively.

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References

Capling, A., & Ravenhill, J. (2011). Multilateralising regionalism: what role for the Trans-

Pacific Partnership Agreement?. The Pacific Review, 24(5), 553-575.

Delaney, L. (2017). Benefits of the Trans-Pacific Partnership Agreement. Retrieved from

https://www.thebalance.com/benefits-to-trans-pacific-partnership-agreement-1953625

Hufbauer, G. (2016). The Pros and Cons of the Trans-Pacific Partnership Pact. Retrieved from

http://www.dw.com/en/the-pros-and-cons-of-the-trans-pacific-partnership-pact/a-

18597149

Ravenhill, J. (2016). The political economy of the Trans-Pacific Partnership: a 21st

Centurytrade agreement?. New Political Economy, 1-22.