Pork Industry Hails Trans Pacific Partnership

China sees the TPP as one of the key free trade agreements for the Asia-Pacific region and is open to any mechanism that follows rules of the World Trade Organization and can boost the economic integration of the Asia-Pacific, said its Ministry of Commerce on Tuesday.

But with more information on the deal likely to be released, there could be fierce opposition, especially in South-east Asian countries where “suspicion over foreign involvement in local economies remains strong”, he noted.

Because American tariffs are mostly quite low, the United States should earn a good share of the almost $300 billion increase forecasted for world trade in 2025 due to the TPP.

Davis said the agreement is meant to modernize decades old language that has put America at a disadvantage when trying to compete with the rest of the world.

The Trans-Pacific Partnership aims to eliminate this type of protectionism through enforceable rules, and that’s another big reason China won’t be joining the TPP anytime soon. Lawmakers have until April to debate the deal.

The United States and Japan have welcomed Taiwan’s interest in joining the TPP.

Having received the news from Amari, Japanese Prime Minister Shinzo Abe told reporters the trade deal “is a great achievement for the future of not only Japan but the Asia-Pacific region”.

But the TPP will do more than broaden Singapore’s access to freer trade in new markets, said DBS economist Irvin Seah.

“An accord among countries representing a large swath of the global economy sends a positive signal worldwide”, Doug Lippoldt, senior trade economist at HSBC Bank Plc., wrote in an e-mailed note.

In a statement, President Obama said the agreement “strengthens our strategic relationships with our partners and allies in a region that will be vital to the 21st century”. But proponents say that these pacts expand markets for USA companies.

The president has to wait 90 days before signing the pact, and only then will Congress begin the process of voting on it. Congress can only give the deal an up-or-down vote. But, if China joins the TPP, these industries will be major beneficiaries while the country’s mining, petrochemical and auto sector would get hurt. TPP will remove unfair trade barriers and help further the global expansion of American agricultural exports, particularly exports of meat, poultry, dairy, fruits, vegetables, grains, oilseeds, cotton and processed products.