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Trans Pacific Partnership trade deal signed by 12 member nations in New Zealand

Thursday, February 4th 2016 - 07:45 UTC
Full article 6 comments
The 12 nations account for some 40% of the world's economy - they now have two years to ratify or reject the pact. The 12 nations account for some 40% of the world's economy - they now have two years to ratify or reject the pact.
Australia's minister for trade Andrew Robb was the first to sign. He was followed by his counterpart, New Zealand trade minister Todd McClay Australia's minister for trade Andrew Robb was the first to sign. He was followed by his counterpart, New Zealand trade minister Todd McClay
President Obama said the pact puts “American workers first” and added TPP would give the US an advantage over other leading economies, namely China” President Obama said the pact puts “American workers first” and added TPP would give the US an advantage over other leading economies, namely China”

The Trans Pacific Partnership, one of the biggest multinational trade deals ever, has been signed by ministers from its 12 member nations in New Zealand. The ceremony in Auckland brings the huge trade pact, which has been five years in the making, another step towards to becoming a reality. But the TPP continues to face opposition.

 The 12 nations account for some 40% of the world's economy - they now have two years to ratify or reject the pact.

Australia's minister for trade Andrew Robb was the first to sign the pact. Those attending the ceremony cheered as his counterpart, New Zealand trade minister Todd McClay, added the last signature.

The TPP involves the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.

Those against the deal, particularly some Americans, fear it could mean jobs will move from the US to developing countries.

However, US President Barack Obama said the agreement was a new type of trade deal “that puts American workers first”.

“Partnership would give the United States an advantage over other leading economies, namely China,” he said in a statement on Wednesday.

“TPP allows America - and not countries like China - to write the rules of the road in the 21st Century, which is especially important in a region as dynamic as the Asia-Pacific,” he said.

“We should get TPP done this year and give more American workers the shot at success they deserve and help more American businesses compete and win around the world.”

Auckland and in the US, among other countries, protestors have voiced their anger about the trade pact over the past several months.

In the lead up to Thursday's signing, the streets around Auckland's central business district were disrupted by groups blocking access to the Auckland Harbor Bridge. Police clashed with some protestors, who have widely claimed the deal will benefit big business rather than workers.

The trade deal looks to facilitate investment between 12 countries across the Pacific Rim, which together account for about 40% of the global economy. It was agreed in October last year after years of negotiations and multiple missed deadlines.

The US-led initiative is a key part of President Obama's so-called pivot to Asia but has proved to be a controversial issue ahead of the US elections in November.

Obama has barely a year left on his term and his administration warns that the US economy will suffer if politicians don't ratify the agreement.

US Trade Representative Michael Froman said the deal could add $100bn a year to US growth. “After five years of negotiation, signing the TPP is an important milestone in our efforts to set high-standard rules of the road in the Asia Pacific region and more generally, and to deliver an agreement that will benefit American workers, farmers and businesses” said Froman.

Categories: Economy, Politics, International.

Top Comments

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  • Skip

    Great deal.

    Hoping they eventually add labour mobility to this as there's several countries I'd love to work in.

    Feb 04th, 2016 - 09:02 am 0
  • Brasileiro

    The gain is minimal. Most of these countries have had free trade agreements among themselves. And everyone has practiced low import duties among themselves.

    Feb 04th, 2016 - 09:29 am 0
  • Skip

    That's not true.

    But love to hear your sour grapes. No one wants free trade with Brazil.

    It's partly why you're in such a terrible recession. And we aren't. Because we embrace free trade and the wealth it helps create.

    Feb 04th, 2016 - 11:19 am 0
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