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1 1 (March 9, 2018)

handle is hein.crs/govcayy0001 and id is 1 raw text is: , . ' -iE S .,. & , TPP: Overview and Current Status p\w -- , gnomgo mppm qq\ , q I aS 11LULANJILiN, Updated March 9, 2018 What is it? The Trans-Pacific Partnership (TPP) was a proposed free trade agreement (FTA), signed by 12 Asia- Pacific countries on February 4, 2016, after 8 years of negotiation. In January 2017, the United States notified the other TPP signatories that it would not ratify the agreement, effectively ending TPP's potential entry into force as written. On March 8, 2018, the remaining 11 TPP parties signed the new Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP). CPTPP would essentially bring a slightly modified TPP into effect among the 11 remaining TPP signatories. The new agreement would freeze a limited number of provisions (20) that were included in the TPP, in part, at U.S. insistence. These suspended provisions, which include commitments on investment and intellectual property rights, could potentially be reinstated were the United States to consider rejoining the agreement. TPP aimed to reduce and eliminate tariff and nontariff barriers on goods, services, and agriculture. It would have established trade rules and disciplines that expanded on commitments at the World Trade Organization (WTO) and addressed new issues. The U.S. withdrawal has economic and foreign policy implications for the United States, and raises potential strategic issues regarding U.S. trade policy and broader regional engagement. Withdrawal and U.S. Next Steps. President Trump's withdrawal from TPP upheld a pledge of his presidential campaign and reflects his Administration's view that previously negotiated U.S. FTAs have had poor outcomes. In August 2017, the Administration began renegotiation of NAFTA, the largest U.S. FTA, with Canada and Mexico, and in January 2018 started official talks with South Korea on potential modifications to the U.S.-South Korea (KORUS) FTA. Both NAFTA countries were signatories to the TPP, which would have essentially modified the decades-old agreement. The Administration's stated objectives for the NAFTA renegotiation, especially on issues such as digital trade, intellectual property rights, labor, and environment, significantly draw on TPP provisions. Moving forward, the Administration intends to negotiate bilaterally on new FTAs, and has suggested TPP countries, particularly Japan, as among the top candidates, in addition to the United Kingdom. More recently, President Trump announced willingness to negotiate collectively with the five TPP countries that are not currently U.S. FTA partners (Figure 1) and to consider rejoining a revised TPP agreement. To date, no TPP countries have formally expressed interest in a bilateral negotiation with the United States, possibly a reflection of the contentious tenor of the NAFTA and KORUS talks. Other Countries' FTA Negotiations. The remaining TPP signatories are pursuing various trade initiatives beyond the CPTPP, including both bilateral trade agreements and other regional pacts. Key among the regional agreements is the Regional Comprehensive Economic Partnership (RCEP), an Association of Southeast Asian Nations (ASEAN)-led initiative that includes China and seven TPP countries, but not the United States. The European Union is also negotiating FTAs with a number of Asian countries, including Japan and Vietnam. To the extent these agreements take a different approach on issues such as the level of liberalization, intellectual property rights, labor and environment commitments, and new rules like state-owned enterprises and e-commerce, they could result in provisions favoring the parties involved and not the United States. They could also put U.S. exporters at a competitive disadvantage as these agreements lower market access barriers among the participants. Stakeholders Views on U.S. Withdrawal. Supporters of withdrawal opposed TPP over concerns it would increase U.S. imports, lead to job losses, and cede U.S. sovereignty. Opponents argue that U.S. withdrawal has lessened U.S. influence and U.S. firms' competitiveness in the region, given other countries, particularly China, greater influence in establishing regional trade rules, and removed incentives for reforms in TPP countries, such as Vietnam, as well as possible future participants. Many also argue withdrawal signals declining U.S. political and economic engagement in the region in the face of China's rise and increasing challenges to the U.S.-led, rules-based trading system. Figure I. 2016 TPP and U.S. Country Demographics Population GDP U.S. PTA (m~fins) iStJS. bd1Wrns Australia I . Brunei 3-r Canada C IhhIle . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .. . . .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..t 3 [ Japan . .. .. , .. . .. . . . . ....... .......,. .,...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . ...... + + + +. : . . . . ......... . ............ . . . . Mexico ,J ii::i:i ! :i::ii NewZ aland........... ... .. .. .. .. .. .. ... .. .. .. .. .. .. .. ... . . . ..... ..............::::::: Viet n. . ... .... ... .. .. .. .. .. .. ... .. .. .. .. .. .. .. ... ...... ....iiiliiiiii: . ........... . United States. . . ............ TheMTPPlasoriginall the... UnitedState icue 30t sarat chaters. Some of its provisio.....nscould Sourc: IM Worl Ecoomic utlok, Apil 217. CS gr.hic The TPP as orginall signedby...... itedStates included 30 searate chapter.Soe o. is p.viio..cul

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