By Chia Yan Min, Economics Correspondent, The Straits Times, 5 Feb 2016
The Trans-Pacific Partnership (TPP), one of the world's biggest multinational trade agreements, was signed by its 12 member nations yesterday in New Zealand.
The signing marks the end of the negotiating process, but the member countries now have two years to get the deal approved at home before it takes effect.
The TPP is a far-reaching agreement involving 12 countries making up 40 per cent of the world economy. They are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
The countries represent a large market for Singapore, accounting for 30 per cent of its total trade in goods in 2013, and 30 per cent of foreign direct investment here.
The TPP has its roots in the P4 (Pacific four) partnership from a decade ago, which Singapore inked with Brunei, Chile and New Zealand. This formed the core of the TPP.
US President Barack Obama hailed the signing of the deal yesterday and said the TPP would give the US an advantage over other major economies, notably China. "TPP allows America - and not countries like China - to write the rules of the road in the 21st century, which is especially important in a region as dynamic as the Asia-Pacific," he said in a statement from Washington.
The Trans-Pacific Partnership (TPP), one of the world's biggest multinational trade agreements, was signed by its 12 member nations yesterday in New Zealand.
The signing marks the end of the negotiating process, but the member countries now have two years to get the deal approved at home before it takes effect.
The TPP is a far-reaching agreement involving 12 countries making up 40 per cent of the world economy. They are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
The countries represent a large market for Singapore, accounting for 30 per cent of its total trade in goods in 2013, and 30 per cent of foreign direct investment here.
The TPP has its roots in the P4 (Pacific four) partnership from a decade ago, which Singapore inked with Brunei, Chile and New Zealand. This formed the core of the TPP.
US President Barack Obama hailed the signing of the deal yesterday and said the TPP would give the US an advantage over other major economies, notably China. "TPP allows America - and not countries like China - to write the rules of the road in the 21st century, which is especially important in a region as dynamic as the Asia-Pacific," he said in a statement from Washington.
The agreement has been fraught with controversy. Yesterday, protesters blocked roads outside the signing venue, Auckland's Sky City Convention Centre.
Those against the deal have expressed concern about the secrecy in which the negotiations were conducted and the threats it poses to some local sectors. They also argue that it will likely protect the rights of large investors and corporations.
The TPP will enter into force once at least six original signatories, accounting for at least 85 per cent of economic activity across the TPP countries, have ratified the deal. This is by no means certain, with the deal being seen as a lightning rod in countries like the US and Canada.
In Singapore, the agreement will be ratified once it is approved by the Cabinet and any legislative changes that may be required are passed in Parliament.
Singapore and 11 partner countries signed the Trans-Pacific Partnership (TPP) agreement in Auckland, New Zealand this...
Posted by Ministry of Trade & Industry on Wednesday, February 3, 2016
Singapore businesses hope TPP will be ratified quickly
By Chia Yan Min, Economics Correspondent, The Straits Times, 5 Feb 2016
The business community here has welcomed the signing of the Trans- Pacific Partnership (TPP) and wants it ratified as soon as possible.
Until then, its full benefits will not be unlocked, they noted.
The TPP, viewed as the most important trade deal negotiated in decades, was signed yesterday in New Zealand by ministers from its member nations.
The deal is a far-reaching agreement involving 12 countries, which make up 40 per cent of the world economy.
The nations - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam - now have two years to ratify or reject the pact.
"Today is a significant achievement, but we have not reached the finish line," said Ms Judith Fergin, the executive director of the American Chamber of Commerce in Singapore.
"To unlock the full potential of the agreement, governments and businesses must continue to work together to ensure prompt approval and implementation of the TPP," she added.
By Chia Yan Min, Economics Correspondent, The Straits Times, 5 Feb 2016
Until then, its full benefits will not be unlocked, they noted.
The TPP, viewed as the most important trade deal negotiated in decades, was signed yesterday in New Zealand by ministers from its member nations.
The deal is a far-reaching agreement involving 12 countries, which make up 40 per cent of the world economy.
The nations - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam - now have two years to ratify or reject the pact.
"Today is a significant achievement, but we have not reached the finish line," said Ms Judith Fergin, the executive director of the American Chamber of Commerce in Singapore.
"To unlock the full potential of the agreement, governments and businesses must continue to work together to ensure prompt approval and implementation of the TPP," she added.
The chamber's chairman, Mr James Andrade, said the agreement will deliver far-reaching benefits for American businesses already in the region, and signal to other firms that "now is the time to explore opportunities around the Pacific".
Mr Ho Meng Kit, chief executive of the Singapore Business Federation, said this latest development is good news for the Singapore business community, especially given the poor global economic outlook and lacklustre trade growth.
"The TPP is a high-quality agreement that will hopefully provide a boost of confidence in the current environment as it will present more opportunities for companies seeking to do business in the Asia-Pacific and catalyse new growth," he said. "The agreement will also serve as a pathway towards a free trade agreement of the Asia-Pacific."
Still, the TPP has a long way to go before it is ratified, said CIMB Private Bank economist Song Seng Wun. "Now comes the hard part," he added.
Even after the deal is ratified and implemented, the benefits to Singapore "might not be fairly obvious", since the Republic is already a very open economy, said Mr Song.
Singapore already has existing free trade agreements with all the countries involved except Canada and Mexico.
But the deal should still help to lift trade and enhance countries' growth potential, he added.
"There will be many obstacles along the way, but (these trade deals) will strengthen growth in the region in the long term."
The Trans-Pacific Partnership has now been officially signed by all 12 member countries. Read the ministers' statement here.
Posted by Office of the U.S. Trade Representative on Wednesday, February 3, 2016
Hurdles remain for TPP deal
By Chia Yan Min, Economics Correspondent, The Straits Times, 6 Feb 2016
One of the world's biggest multinational trade agreements moved a step closer to becoming reality on Thursday.
But it will be some time yet before countries can reap the benefits of the Trans-Pacific Partnership (TPP) - as the mammoth deal is called - with no guarantee it will even be ratified and implemented.
The TPP was signed by its 12 member nations on Thursday in Auckland, New Zealand. It is a far-reaching agreement involving 12 countries making up 40 per cent of the world economy: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Besides slashing an estimated 18,000 tariffs, the TPP will set common standards in areas ranging from workers' rights to intellectual property protection. It will now undergo a two-year ratification period. The agreement will enter into force once at least six original signatories, accounting for at least 85 per cent of economic activity across the TPP countries, have ratified it.
This will not be an issue in Singapore, which has always come down firmly on the side of freer trade.
But the agreement has been plagued by controversy elsewhere. Protesters turned out strongly in Auckland, where the deal was signed. The pact has also drawn flak in the US and Canada.
Those against the TPP have expressed concerns about the secrecy in which the negotiations were conducted and the threats it poses to some local sectors. They also argue that it will likely protect the rights of large investors and corporations.
Countries will have to work to convince domestic stakeholders of the benefits of the TPP.
It also remains unclear whether US lawmakers will ratify the accord, which has sparked dozens of protests across the US and is set to be a hot-button issue at the upcoming presidential election.
By Chia Yan Min, Economics Correspondent, The Straits Times, 6 Feb 2016
One of the world's biggest multinational trade agreements moved a step closer to becoming reality on Thursday.
But it will be some time yet before countries can reap the benefits of the Trans-Pacific Partnership (TPP) - as the mammoth deal is called - with no guarantee it will even be ratified and implemented.
The TPP was signed by its 12 member nations on Thursday in Auckland, New Zealand. It is a far-reaching agreement involving 12 countries making up 40 per cent of the world economy: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.
Besides slashing an estimated 18,000 tariffs, the TPP will set common standards in areas ranging from workers' rights to intellectual property protection. It will now undergo a two-year ratification period. The agreement will enter into force once at least six original signatories, accounting for at least 85 per cent of economic activity across the TPP countries, have ratified it.
This will not be an issue in Singapore, which has always come down firmly on the side of freer trade.
But the agreement has been plagued by controversy elsewhere. Protesters turned out strongly in Auckland, where the deal was signed. The pact has also drawn flak in the US and Canada.
Those against the TPP have expressed concerns about the secrecy in which the negotiations were conducted and the threats it poses to some local sectors. They also argue that it will likely protect the rights of large investors and corporations.
Countries will have to work to convince domestic stakeholders of the benefits of the TPP.
It also remains unclear whether US lawmakers will ratify the accord, which has sparked dozens of protests across the US and is set to be a hot-button issue at the upcoming presidential election.
All of these factors mean there are still significant hurdles to get over on the road towards freer trade.
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