TPP deal credit positive for Asian sovereigns: Moody’s

If TPP takes effect and China remains on the sidelines of the multilateral agreement, Haitong said, Chinese researchers have calculated the net impact on the nation’s economy would be a mere 0.14 percent decline in annual gross domestic product.

South Korea will hold a fresh round of talks on a multinational free trade agreement covering Asia and Oceania this week, following the recently concluded Trans-Pacific Partnership (TPP) led by the United States, the trade ministry said Sunday.

Among the 12 initial TPP member countries, Taiwan has signed free trade agreements with Singapore and New Zealand only and therefore has to negotiate with the other 10 countries for joining TPP in the second round.

“As freight forwarders, our members recognise that liberalised trade agreements are critical to business both large and small that seek to expand their markets”.

Prime Minister Stephen Harper has pledged $1 billion to help the auto sector in the wake of the deal.

“It is not created to encircle China”, Deputy US Secretary of State Antony Blinken said in Seoul last week when asked if Washington sees the TPP deal as a way to check China. Her views put her alongside labor unions and fellow Democratic candidates Sanders and Martin O’Malley, who have also expressed their opposition.

Then there’s the 190 Republican supporters in the lower chamber that Obama administration must convince to vote again with the president on the TPP like they did on trade promotion authority. Given China’s slowing growth, and overall sluggish world trade, the TPP would revitalize not only rich developed countries but also poor developing countries.

“When more than 95 percent of our potential customers live outside our borders, we can’t let countries like China write the rules of the global economy”, U.S. President Barack Obama said in a statement this week.

The underlying intention of TPP is allowing associated countries to benefit from each other allowing more flexibility in nations that are ruled by strict state-driven laws and poor working conditions. Justin Trudeau’s Liberals say they are broadly pro-trade, but want to see the full text of the deal. Due to this agreement and its removal of unfair trade barriers, American agricultural exports to the region will expand even further, particularly exports of meat, poultry, dairy, fruits, vegetables, grains, oilseeds, cotton and processed products.

The Trans-Pacific Partnership (TPP) deal will hit India’s textile exports hard by providing zero-duty access to the U.S. market to Vietnam, says a report today.