The Trans-Pacific Partnership (TPP) is a trade agreement among twelve Pacific Rim countries, aiming to promote economic growth and job creation while reducing trade barriers. It involves significant measures affecting around 18,000 tariffs and includes investor-state dispute settlement mechanisms. While the pact has potential benefits for member countries, such as increased exports and economic integration, it also faces criticism for potentially exacerbating income inequality and challenges from non-member nations like India.

2. INTRODUCTION
A trade agreement among
twelve Pacific Rim countries.
Drafted on 5 October 2015.
Signed on 4 February 2016 in
Auckland, New Zealand.
Seven years of negotiations.
Not entered yet into force.
TPP concern many matters of
public policy.

5. GOALS OF TPP TRANS PACIFIC
PARTNERSHIP

6. STATED GOALS OF TPP
1. Promote economic growth.
2. Support the creation and retention of jobs.
3. Enhance innovation, productivity and
competitiveness.
4. Raise living standards.
5. Reduce poverty in our countries.
6. Rnd promote transparency.
7. Good governance.
8. Enhanced labor and environmental protections.

7. OTHER GOALS
TPP contains measures to lower trade
barriers (tariff barriers majorly).
investor-state dispute settlement mechanism
(but states can opt out from tobacco-related
measures).

8. INVESTORS STATE DISPUTE
SETTLEMENT (ISDS)
an instrument of public international law
grants an investor the right to use dispute settlement
proceedings against a foreign government.
If an investor from one country (the "Home State") invests in
another country (the "Host State"), both of which have agreed
to ISDS, and the Host State violates the rights granted to the
investor under public international law, then that investor may
bring the matter before an arbitral tribunal.
While ISDS is often associated with international arbitration
under the rules of ICSID it in fact often takes place under the
auspices of international arbitral tribunals governed by different
rules and/or institutions, such as the London Court of
International Arbitration, the International Chamber of
Commerce, the Hong Kong International Arbitration Centre or
the UNCITRAL Arbitration Rules.

11. MEMBER COUNTRIES
1.Australia
2.Canada
3.Japan
4.Malaysia
5.Mexico
6.Peru
7.USA
8.VIETNAM
9.BRUNEI
10.JAPAN
11.NEW
ZELAND
12.SINGAPOR

13. TPP IN NUTSHELL
1.It involves 12 countries: the US, Japan, Malaysia,
Vietnam, Singapore, Brunei, Australia, New Zealand,
Canada, Mexico, Chile and Peru.
2.The pact aims to deepen economic ties between these
nations, slashing tariffs and fostering trade to boost
growth.
3.Member countries are also hoping to foster a closer
relationship on economic policies and regulation.
4.The agreement could create a new single market
something like that of the EU.

14. GOODS & SERVICES THAT
ARE GOING TO BE
AFFECTED?
In all, some 18,000 tariffs are affected.
The signatories have said they will either eliminate or reduce tariffs and
other restrictive policies from agricultural products and industrial goods.
Tariffs on US manufactured goods and almost all US farm products will go
almost immediately once the deal is ratified.
On textiles and clothing, they will be removing all tariffs, but while the US
Trade Representative says most tariffs will be removed immediately after
the deal is ratified, "tariffs on some sensitive products will be eliminated
over longer time frames as agreed by the TPP Parties".
On trade in services, they have agreed that free trade would be quite a
good thing, and in some areas, they are going to liberalise trade.

15. HOW BIG DEAL IS TPP?
Pretty big indeed. The 12 countries have a collective
population of about 800 million - almost double that
of the European Union's single market. The 12-
nation would-be bloc is already responsible for 40%
of world trade.
The deal is a remarkable achievement given the
very different approaches and standards within the
member countries, including environmental
protection, workers' rights and regulatory coherence
- not to mention the special protections that some
countries have for certain industries

17. BENEFITS TO USA
TRANS
PACIFIC
PARTNERSHIP

18. BENEFITS TO USA
will help increase Made-in-America exports,
grow the American economy,
support well-paying American jobs,
and strengthen the American middle class.
TPP will make it easier for American entrepreneurs,
farmers, and small business owners to sell Made-In-
America products abroad by eliminating more than
18,000 taxes & other trade barriers on American
products across the 11 other countries in the TPP—
barriers that put American products at an unfair
disadvantage today.

19. BENEFITS TO USA
The rules of the road are up for grabs in Asia. If we
don't pass this agreement and write those rules,
competitors will set weak rules of the road,
threatening American jobs and workers while
undermining U.S. leadership in Asia.

23. BENEFITS TO
VIETNAM
TRANS PACIFIC
PARTNERSHIP

24. BENEFITS TO VIETNAM
Vietnam is poised to be
TPP’s biggest winner.
Vietnam’s growing
production and export of
apparel and
footwear,resulting from the
phase out of high duties in
TPP partner countries,
especially the United States.
High-standard TPP—along
with Vietnam’s new trade
agreement with the
European Union will also
require Vietnam to make and
adhere to major structural

25. BENEFITS TO VIETNAM
Participating countries have also found that the
benefits of implementing comprehensive FTAs are
significant and go well beyond the obvious
advantages of eliminating duties on a country’s
primary exports.
High-standard FTAs can also promote foreign
investment, technological advancement, innovation,
broader participation in trade, and other key
developments that together with additional reforms
can drive stronger and more broadly shared
economic development.

26. BENEFITS TO
CANADA
TRANS PACIFIC
PARTNERSHIP

27. BENEFITS TO CANADA
Trade losses to member nations due to higher tariffs.
Canadian export products would be on a level playing
field with all members and at an advantage to nations
outside of the TPP.
overall more exports from Canada to TPP members.
added advantage of more and cheaper imports to
Canada from these same TPP members.

28. BENEFITS TO
MALAYSIA
TRANS PACIFIC
PARTNERSHIP

29. BENEFITS TO MALAYSIA
It will allow Malaysia to join a partnership of
economies and receive beneficial terms and
leverage when negotiating for trade.
Many other key sectors would also supposedly
benefit from various favourable terms, including a
reduction in duty of up to 93%.
Signing the TPPA may make Malaysia a more
attractive location for investments, and with nations
such as the USA, Japan and Singapore in the
TPPA, there is a greater potential to attract investors
from those economies.

30. BENEFITS TO
AUSTRALIA
TRANS PACIFIC
PARTNERSHIP

31. BENEFITS TO AUSTRALIA

33. BENEFITS TO JAPAN TRANS PACIFIC
PARTNERSHIP

34. BENEFITS TO JAPAN
strategic and intangible benefits
Japan also profits concretely from the TPP.
regulations over foreign companies entering markets
have been relaxed, and this will make it easier for
Japanese companies to expand overseas into new
opportunities.
the auto industry will benefit from a phase-in in the
reduction of tariffs on their exports.
the lowering of tariffs on farm, dairy, and other goods
will help lower the costs of these items to Japanese
consumers.
the completion of the TPP will give Japan leverage to
quickly conclude trade agreements with other countries.

38. BENEFITS TO
MEXICO
TRANS PACIFIC
PARTNERSHIP

39. BENEFITS TO MEXICO
As a founding member, Mexico has veto rights over
future potential members.
Currently, 67% (US$574 bn) of Mexico’s commerce
and 53% (US$228 bn) of Mexico’s FDI is within
NAFTA.
Commerce with countries included in the TPP other
than those in NAFTA (USA and Canada) add an
additional 5% (US$40 bn) in commerce and 2%
(US$14 bn) in FDI for Mexico.
According to current figures, 72% of Mexico’s
commerce (US$574 bn) and 55% (US$225 bn) of
FDI is within the TPP. Most of it linked to the USA.

40. BENEFITS TO
SINGAPORE
TRANS PACIFIC
PARTNERSHIP

41. BENEFITS TO
SINGAPORE
Exporters will benefit from the removal of duties on
more types of goods than previous trade
agreements provided for.
Singapore could be an indirect beneficiary of
increased trade between other TPP nations.
Singapore companies which provide services such
as shipping and trade financing "could benefit from
increased trade between the big players".

45. BENEFITS TO PERU TRANS PACIFIC
PARTNERSHIP

46. BENEFITS OF PERU
Ease the entry of Peruvian products into the bloc’s
member countries and improve access granted
through existing trade agreements.

47. BENEFITS TO
BRUNEI
DARUSSALAM
TRANS PACIFIC
PARTNERSHIP

48. BENEFITS TO BRUNEI
DARUSSALAM
One of the largest gainers among the Trans Pacific
Partnership (TPP) member countries.
Brunei would experience a 5.9 per cent income
growth from baseline income by 2030.
Benefit from lower tariffs and non-tariff measures in
large export markets and at home from stronger
positions in regional supply chains through deeper
integration

49. BENEFITS TO NEW
ZELAND
TRANS PACIFIC
PARTNERSHIP

50. BENEFITS TO NEW
ZELAND
TPP will give New Zealand better access to globally
significant markets.
It will diversify New Zealand's trade and investment
relationships, and provide a platform to build on the NZ$28
billion of New Zealand goods and services exported to TPP
countries in 2014.
TPP will help support that by setting a new standard for trade
and investment in the Asia Pacific region, generating
substantial long-term economic and strategic benefits for New
Zealand.
It provides a platform for wider, regional economic integration,
and supports the foundation for a free trade agreement of the
Asia Pacific. This gives New Zealand the opportunity to shape
future trade liberalisation in the Asia Pacific region and
promote the growth of regional supply chains.

53. PROS & CONS OF
TPP & OBSTACLES
TO TPP
TRANS PACIFIC
PARTNERSHIP

54. PROS OF TPP
Boosts exports and economic growth, creating more jobs
and prosperity for the 12 countries involved.
increases exports by $305 billion per year by 2025. U.S.
exports would increase by $123.5 billion, focusing on
machinery, especially electrical, autos, plastics and
agriculture industries.
removing 18,000 tariffs placed on U.S. exports to the
other countries.
United States has already withdrawn 80% of these tariffs
on foreign imports.
TPP evens the playing field.

55. PROS OF TPP
The agreement adds $223 billion a year to incomes
of workers in all the countries, with $77 billion of that
going to U.S. workers.
All countries agreed to cut down on wildlife
trafficking, especially elephants, rhinoceroses, and
marine species. It prevents environmental abuses,
such as unsustainable logging and fishing. Those
that don't will face trade penalties.

59. CONS OF TPP
Will contribute to income inequality in high-wage
countries by promoting cheaper goods from low-wage
countries.
Higher-paid owners of the intellectual property would
receive more of the income gains.
the trade agreement could supersede financial
regulations.
Authoritative Power of Investors State Dispute
Settlement (ISDS)

61. OBSTACLES FOR TPP
The United States agreed to shorter patents,
especially for biologic drugs. Pharmaceutical
companies can keep their formulas secret for five to
seven years instead of 12 years.
All stated-owned enterprises must comply with
global trade standards that protect their workers and
the environment. The United States had to
overcome objections from Vietnam, Singapore, and
Malaysia. Those countries must now allow labor
unions or face penalties.

62. The United States, Japan, and Canada will lose some tariff
protection for dairy, beef and poultry producers.
These countries also agreed to open up their automotive
industries. That could cost local jobs while lowering the
price of cars and trucks.
The United States won the battle over the Investor-State
Dispute Settlement Mechanism. That gives foreign
companies more rights to sue the government than their
domestic companies have. In return, the U.S. agreed to
restrictions on the trade of tobacco. Cigarette companies
will no longer be allowed to use arbitration panels to sue
countries that tax or otherwise restrict cigarette advertising.

63. EFFECTS OF TPP TRANS PACIFIC
PARTNERSHIP

64. EFFECTS OF TPP
By 2030, the TPP will generate an annual income
gain of $492 billion for the world.
Percentage gains are especially large for Vietnam
and Malaysia, where the agreement should also
stimulate domestic reforms and provide access to
protected foreign markets.
significant percentage gains are projected for the
smaller economies of Brunei, Peru, Singapore and
New Zealand.

65. EFFECTS OF TPP
negatively affect non-members
divert trade from nonmembers to members
Losses are tangible for China, India and Thailand, which
compete with TPP members for TPP markets, and for
Korea.
Some nonmembers, including the E.U. and Hong Kong,
experience net gains, in part because of the assumption
that TPP provisions liberalize some trade with
nonmembers.
additional integration in the Asia-Pacific region and
beyond, with larger attendant gains.

66. EFFECTS OF TPP
It is potentially a pathway to the Free Trade Area of
the Asia-Pacific (FTAAP), which could include all
APEC members.
The Transatlantic Trade and Investment
Partnership, in negotiation since 2013, would also
have large effects.
The TPP reflects the high ambitions of the major
countries in rule-making.

69. INDIA & TPP TRANS PACIFIC
PARTNERSHIP

70. EFFECT OF TPP ON INDIA
India's exports are going to be impacted when the
TPP is in place as there would be significant
diversion in trade and foreign investments from the
Indian market.
A large portion of India's exports are in services.
With the anticipated reduction in barriers to trade in
services among TPP members, there is the
possibility that some of India's services exports to
those countries will be replaced by services trade
with the TPP member countries.

71. EFFECT OF TPP ON INDIA
The TPP would set a precedent to high global standards
and in the event of India's failure to mature and revitalize
its manufacturing industry, and induce efficiency in its
export sector, it would be increasingly difficult for India to
be able to export even if it's a part of RCEP.
India is going to lose the preferential access to the US
market which is a big market for Indian exports.
With the TPP in place, Indian industries are likely to face
trade diversion effects in some of the key sectors such as
textiles and clothing industries.

72. EFFECT OF TPP ON INDIA
Indian exports will be adversely impacted more due
to the non-tariff measures rather than tariff
measures as the tariff measures are already low in
larger markets such as the US and EU.
In addition to labour and environmental regulations,
intellectual property rights (IPR) protection is a
significant component to the TPP negotiations. The
IPR standards are much more demanding than
those of WTO.
There is expectation of significant foreign investment
diversion from India and since, a large proportion of
India's exports are in services, the impact would be
significant.

73. A BIG QUESTION TRANS PACIFIC
PARTNERSHIP

74. SHOULD INDIA BE A PART
OF TPP?
NO
REASON
TPP would set a precedent to high global standards &
commitments. Even though TPP is open for new
members, the standards set by TPP are too high for India
to join.India may not be able to meet many of the
commitments for instance the supply chain management
or regulatory coherence among others.

76. WHAT STRATEGY INDIA IS
PERSUING TO TACKLE TPP?
These challenges should be treated as an opportunity to
respond strategically, and to persuade Indian industry to rise to
the challenge of higher standards in both products and
services, and the framework of rules.
India wants to find its own way into the global supply chains
and markets via the RCEP, a proposed free trade agreement
between the 10-members of the Association of Southeast
Asian Nations plus Australia, China, India, Japan, South Korea
and New Zealand.
India also needs to resume stalled negotiations with the EU.

77. WHAT STRATEGY INDIA
IS PERSUING TO TACKLE
TPP?
with a view to muster support for its
negotiations in RCEP and with the EU.
Indian businesses must recognise that the
essence of such negotiations is give and
take.

80. NEAR FUTURE OF
TPP
TRANS PACIFIC
PARTNERSHIP

81. WHAT HAPPENS NEXT?
The text of the agreement will have to be signed and
then ratified by all 12 signatories. Details of how the deal
will be implemented will be argued out in individual
countries' legislatures.
In the US, it comes before Congress in the midst of a
presidential election year, which is likely to turn it into a
major political football within both parties.
However, Congress has granted President Obama "fast-
track" authority over the deal, which only allows
lawmakers to either reject it or ratify it.