The TPP is expected to help the global economy increase by nearly 300 billion USD per year. Once it takes effect, the TPP will create the world’s largest trade zone, with 790 million people, and account for 40% of global GDP and 30% of trade. Over 18,000 tariffs will be removed.
Vietnam and Malaysia are forecast to benefit the most from the agreement. Vietnam’s GDP is expected to rise by 10% while that of Malaysia by 8%. Big economies like the US and Japan will also benefit. According to Michael Froman, US Trade Representative, the TPP could boost US GDP by 100 billion dollars per year.
However, to be part of the TPP, member countries must adjust their policies following high-standard trade principles and stringent environmental, labor, and intellectual property rights regulations. These were seen as great obstacles to TPP negotiations, which took over five years to conclude.
Another highlight of the TPP are its social responsibility terms. Enterprises must commit to sustainable development by complying with environmental protection requirements, gender equality, labor safety and workers’ rights.
The TPP is seen as the basic framework of the regional integration process. Therefore, the agreement will likely not be the end, but the start of more ambitious economic agreements and future prospects in Asia-Pacific.
