Financial Times - Lexiconhttp://lexicon.ft.comTerm of the Day from the Financial Times Lexiconen(PICS-1.1 "http://www.classify.org/safesurf/" L gen true for "http://www.ft.com/" r (SS~~000 1))&copy The Financial Times Ltd 2014 'FT' and 'Financial Times' are trademarks of The Financial Times Ltd. See http://www.ft.com/servicestools/help/terms#legal1 for the terms and conditions of reuse.client.support@ft.comTue, 16 Jun 2009 01:42:55 +0100Wed, 16 Apr 2014 15:01:11 GMTNewspapers15http://lexicon.ft.comhttp://lexicon.ft.comFinancial Timeshttp://im.media.ft.com/m/img/rss/RSS_Default_Image.gifhttp://lexicon.ft.comTPP Trans Pacific Parnership Agreementhttp://lexicon.ft.com/Term?term=TPP Trans Pacific Parnership Agreement<p><span>The Trans Pacific Partnership agreement had humble beginnings. It was initially a trade pact envisaged by Brunei, Chile, New Zealand and Singapore, but the TPP was transformed in 2008 when the US expressed its interest. Since then, the TPP has expanded to 12 members, bringing in Australia, Canada, Malaysia, Mexico, Peru and Vietnam. Most significantly, in 2013, Japan – often considered a free-trade laggard – surprised many by entering the talks. Its entry brings a critical mass to a deal that, if completed, would cover countries that account for two-fifths of global output and one-third of international trade.</span></p> <p>It is called a partnership because the negotiation goes beyond lowering traditional trade barriers, such as tariffs and quotas, and is expected to include rules on regulatory policies (such as competition law). These 12 nations are also expected to agree upon rules on the conduct of state-owned enterprises, which sometimes receive subsidies from governments or give subsidies to others--both of which can allow for undercutting of rivals. The American government likes to call this partnership a "gold standard" agreement because they regard it as the most comprehensive trade deal ever negotiated, more far reaching that the WTO accords."</p> <p> </p> <p><img style="float: left; border: 2px solid black; margin: 2px;" src="http://im.ft-static.com/content/images/2c306330-223b-11e3-bb64-00144feab7de.img?width=681&height=261&title=&desc=" alt="Economic data for TPP countries" width="412" height="196" /></p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <p> </p> <h2>TPP in the news</h2> <p>In February 2014 an FT reporter wrote that<a title="Trans-Pacific Partnership talks stall on US-Japan stand off - FT.com" href="http://www.ft.com/cms/s/224c052a-9df8-11e3-95fe-00144feab7de.html" target="_blank"> trade talks had stalled</a> on a US-Japan stand-off after the two biggest powers, the US and Japan, failed to agree on allowing easier access to each other's markets.</p> <p>In April 2014 the <a title="US attacks Japan's stance on Trans-Pacific Partnership - FT.com" href="http://www.ft.com/cms/s/0/f0aa9982-bb4d-11e3-b2b7-00144feabdc0.html" target="_blank">US criticised Japan's stance on the TPP</a>. <span>At a congressional hearing the US trade representative, said he had told Japan that it was not living up to its commitment to help create a “high-standard, ambitious, comprehensive” agreement.</span></p>Tue, 08 Apr 2014 12:37:54 +0100<p><span>The Trans Pacific Partnership agreement had humble beginnings. It was initially a trade pact envisaged by Brunei, Chile, New Zealand and Singapore, but the TPP was transformed in 2008 when the US expressed its interest. Since then, the TPP has expanded to 12 members, bringing in Australia, Canada, Malaysia, Mexico, Peru and Vietnam. Most significantly, in 2013, Japan &ndash; often considered a free-trade laggard &ndash; surprised many by entering the talks. Its entry brings a critical mass to a deal that, if completed, would cover countries that account for two-fifths of global output and one-third of international trade.[ref url=""]Financial Times[/ref]</span></p> <p>It is&nbsp;called a&nbsp;partnership&nbsp;because the negotiation goes beyond lowering traditional trade barriers, such as tariffs and quotas, and is expected to include rules on regulatory policies (such as competition law). These 12 nations are also expected to agree upon rules on&nbsp;the conduct of state-owned enterprises, which sometimes receive subsidies from governments or give subsidies to others--both of which can allow for undercutting of rivals. The American government likes to call this&nbsp;partnership&nbsp;a "gold standard" agreement because they regard it as the most comprehensive trade deal ever negotiated, more far reaching that the WTO accords."[ref url=""]Simon Evenett, <span>Professor of International Trade and Economic Development, St Gallen</span>[/ref]</p> <p>&nbsp;</p> <p><img style="float: left; border: 2px solid black; margin: 2px;" src="http://im.ft-static.com/content/images/2c306330-223b-11e3-bb64-00144feab7de.img?width=681&amp;height=261&amp;title=&amp;desc=" alt="Economic data for TPP countries" width="412" height="196" /></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <h2>TPP in the news</h2> <p>In February 2014 an FT reporter wrote that<a title="Trans-Pacific Partnership talks stall on US-Japan stand off - FT.com" href="http://www.ft.com/cms/s/224c052a-9df8-11e3-95fe-00144feab7de.html" target="_blank"> trade talks had stalled</a> on a US-Japan stand-off after the two biggest powers, the US and Japan, failed to agree on allowing easier access to each other's markets.</p> <p>In April 2014 the <a title="US attacks Japan's stance on Trans-Pacific Partnership - FT.com" href="http://www.ft.com/cms/s/0/f0aa9982-bb4d-11e3-b2b7-00144feabdc0.html" target="_blank">US criticised Japan's stance on the TPP</a>.&nbsp;<span>At a congressional hearing the US trade representative, said he had told Japan that it was not living up to its commitment to help create a &ldquo;high-standard, ambitious, comprehensive&rdquo; agreement.</span></p>