Trans Pacific Partnership (TPP)
The Trans Pacific Partnership (TPP) is a trade agreement of unprecedented scope and ambition with great potential to drive job-creating growth across the U.S. economy. Currently, the TPP consists of 12 countries: The United States, Canada, Mexico, Japan, Australia, New Zealand, Malaysia, Peru, Chile, Vietnam, Singapore, and Brunei.
Signed on February 4, 2016 (but not yet put into force), the TPP has the stated goal to "promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty within its countries; and promote transparency, good governance, and enhanced labor and environmental protections."
The countries currently party to the agreement are some of the U.S.' biggest and fastest-growing commercial partners, accounting for $1.5 trillion worth of trade in goods and $250 billion worth of services annually. They generate about 40% of the world's GDP and 26% of the world's trade.
Among other things, the TPP contains measures to lower trade barriers such as tariffs, and establish an investor-state dispute settlement mechanism. The U.S. government has considered the TPP as the companion agreement to the proposed Transatlantic Trade and Investment Partnership (TTIP), a similar agreement between the U.S. and the European Union.
The TPP will provide new market access opportunities for U.S. exporters of goods and services, as well as investors, that are additional to the U.S.’ existing free trade agreements. For investment, the TPP will create new opportunities and provide a more predictable and transparent regulatory environment. The TPP will also establish a more seamless trade and investment environment across the 12 countries by setting commonly-agreed rules and promoting transparency of laws and regulations. The TPP will provide greater certainty for businesses, reduce costs and red tape, and facilitate participation in regional supply chains.
For more information on the TPP, visit the United States Trade Representative at: