The Trans-Pacific Partnership: with whom and why?

In the early October 2015, 12 countries of the Trans-Pacific region reached the Trans-Pacific partnership agreement. Initiative of the partnership creation belongs to Brunei, New Zealand, Singapore and Chile. Under the TPP* frameworks the USA, Australia, Canada, Japan, Malaysia, Mexico, Chile, Peru and Vietnam formed the economic union. The TPP is expected to operate after each of 12 countries will ratify the agreement, i.e. in or after 2016.  

The TTP countries formed a kind of free trade zone in the South-Pacific. According to the agreements reached, the general policy for the intellectual property rights protection should be implemented, as well as the general policy for government procurements, export control, competitive policy and probably there will be agreement for currency issues.  

There should be no customs fees between the partner countries. Also it is necessary to unify sanitary and phytosanitary measures and labor markets. Moreover, the agreement provides for settlement in environmental impact, internet trading and services trading. According to the analysts, several countries are easier to come to terms with each other, than to agree for reduction of trade barriers under the WTO*. 

The experts considers the TTP as an alternative to ASEAN* and APEC* in the South-Pacific, because they are not aimed at promoting the America’s attention to Asia. The TPP formation could also be a barrier for the China policy in this region. The USA President explicitly stated about it in his speech for the Congress in April 2015. The USA also considers this partnership as a tool for strengthening their allies in the South-East at the confrontations with China. 

Today China actively partakes in APEC format, SCO*, promotes the Silk Road project, RCEP*, supporting in implementation of economic interests. Despite some countries directly cooperate with China, there are difficulties with entering its domestic market and not every South-East country agrees with this state of affairs. That is why the question of China’s participation in the TPP is not arisen yet.  On the other hand, the USA suggests equal in the TPP. However, Russia and China can be the members only with the approval of the United States because of their dominant position.   

Today Russia’s leadership approaches the project in the context of assessment, because the partnership does not affect interests of the country in the trade on the South-East market. In its turn, Russia develops the EEU* project and has already stated the idea of connecting this project with the Chinese “Silk road economic belt” linked with the RCEP. By the Russian government, the TPP appearance is considered as backstage project and an intention of some countries to solve problems out of WTO, because negotiations on the partnership creation are conducted in secret from own nationals, business community, public and even other countries. 

The decision concerning the TPP is considered by the foreign affairs experts as a first step to split of the region into economic blocs. That is why the position of negotiators relating to the TPP is a matter of concern, connected with the risk of world trade segmentation after the partnership creation. However, it does not prevent Russia to directly cooperate with Vietnam, New Zealand and other countries. 

*

TPP – Trans-Pacific Partnership

WTO – World Trade Organization

ASEAN - Association of Southeast Asian Nations

APEC - Asia-Pacific Economic Cooperation

SCO - Shanghai Cooperation Organisation

RCEP - Regional Comprehensive Economic Partnership

EEU - Eurasian Economic Union.