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TPP without America
Quiz #A: Summary of Case Study
The case study discusses the Trans-Pacific Partnership, focusing on the withdrawal of America from the negotiations. Notably, the nation was under President Trump when it failed to enter into this force (Torrey n.p.). CPTPP evolved from the TPP and became the third biggest free-trade region across the world. Notably, all original TPP signatories concluded the CPTPP except America because Trump pulls it out of the agreement. The CPTPP failed to incorporate several provisions that favored America resulting in the decision to withdraw from the negotiations (Torrey n.p.). Various issues associated with the agreement had adverse effects on the American economy. President Trump felt that the CPTPP undermine the country’s majority rules system.
Quiz #B: Questions
#1: Benefits of TPP
The TPP agreement was expected to eliminate and reduce the tariffs placed on American exports (Wang 320). Notably, the tariff elimination would also be applied to manufactured goods such as car engines and construction machinery. The taxes or tariffs were found to hinder market access. Elimination of the taxes would promote the growth of the American economy. Besides, TPP was likely to reduce regulatory complexity among the included nations. The costs and risks of accomplishing business globally for small business would be eased through the regulatory cohesion. Therefore, the idea of reducing regulatory complexity was to enhance access to foreign markets. Moreover, the TPP agreement was expected to ensure the protection of intellectual property (Minghui 95). TPP nations were expected to implement IP regimes, which would promote the acquisition of patents and copyrights, among other business registration documents.
#2: TPP Potential Drawbacks to America and Other Nations
TPP agreement was likely to cause income inequality in America and other high-wage nations (Hill 513). Notably, this is because workers earning high-income would benefit much from the negotiation. Besides, America’s negotiating power would be reduced if it entered the TPP. The agreement was likely to take away several benefits that the U.S. was enjoying on the global stage.
Outstandingly, other nations would experience drawbacks from the TPP. The agreement did not promote equality because economic standards were controlled more by America compared to other countries (Wang 324). The TPP benefits were dependent on America’s participation. Another drawback would be subjecting consumers to high copyright protection costs. The provision of free trade on the global market was likely to increase the price of products from pharmaceutical companies. Therefore, consumers would be expected to pay more to acquire previously cheap services. Furthermore, the nations’ government income would decrease after the reduction or elimination of tariffs (Minghui 95). TPP agreement supported free-trade. Therefore, governments would not benefit from global trade.
#3: Reasons Trump Opposed the TPP
The negative implications associated with the TPP made President Trump oppose the agreement adamantly. For instance, TPP was likely to expose America to economic drawbacks. Income inequality was a possible adverse effect of America entering the negotiations (Minghui 95). Besides, the TPP was likely to deprive America of the benefits that it enjoyed before its provisions.
#4: CPTTP Threat to American Economy
The CPTTP did not threaten the economic interests of America. Notably, this is because America’s economy would benefit from this partnership. The global market would be leveled through the free-trade associated with the CPTTP (Hill 523). Besides, trade barriers would be eliminated, enabling Americans to benefit from the free-trade provision. Economic growth would be witnessed in America because the products will be exported to global markets through the duty-free borders. Therefore, high profits would be attained, resulting in the improvement of the American economy.
Works Cited
Hill, Charles WL, and William Hernández-Requejo. Global business today. New York: McGraw-Hill Irwin, 2008.
Minghui, Shen. “Understanding the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.” J. WTO & China 8 (2018): 95.
Torrey, Zachary. “TPP 2.0: The deal without the US. 2018, https://thediplomat.com/2018/02/tpp-2-0-the-deal-without-the-us/. Accessed on May 28, 2020.
Wang, Heng. “The future of deep free trade agreements: The convergence of TPP (and CPTPP) and CETA?” Journal of World Trade 53.2 (2019): 317-342.