QUESTION TIME!

What was the T.P.P.?
The Trans-Pacific Partnership (TPP) was a trade agreement between 12 countries : Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, U.S.A. and Vietnam, originally signed on 4 February 2016.

The pact aimed to deepen economic ties between the 12 countries that border the Pacific Ocean, slashing tariffs and fostering trade to boost growth. The agreement was designed so it could eventually create a single market, something like that of the European Union.

 

Why did the U.S.A. abandon the T.P.P.?
Former U.S. President Barack Obama treated trade deals as a priority during his tenure and it was thought this particular deal would have bolstered America's position in the Asia-Pacific region where China is growing in influence.

However, U.S. President Donald Trump made withdrawing from the T.P.P. a key part of his election campaign, calling it a 'horrible deal' that would 'undermine' the U.S. economy and cost U.S. jobs. True to his word, on his first day in office in January 2017, President Trump signed a presidential memorandum to withdraw the U.S. from the agreement.

 

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The U.S. pulling out of the deal was a big blow for other nations that had signed up. However, the T.P.P. was 're-badged' as the CPTPP and the remaining 11 nations reached a partial agreement on 11 November 2017.

 

What does the CPTPP mean for Australia and New Zealand?
The CPTPP includes many of the elements that were negotiated as part of the original TPP.

The primary outcome of the agreement was the abolition of tariffs within the region, making trade considerably cheaper, and creating jobs, particularly for products and services for export markets.

It is also intended to create a much simpler set of trade and investment rules between participating countries. This would be a huge win for our countries, making it considerably easier and simpler for us to trade.

The CPTPP will preserve the right of governments to regulate in the public interest.

Other trading partners will be able to join the CPTPP in the future if existing partnership countries agree.

 

Source: Australia and NZ Departments of Foreign Affairs and Trade, RMIT University, ABC, BBC News.