Trans-Pacific Partnership

Vocabulary

Video

Transcript

The smile for the cameras in the Hawaiian sun.

But there’s no hiding the difficulty in reaching an agreement between a dozen trade officials, each representing their own country’s interests.

Still, ministers are expressing optimistic as talks draw to a close.

Akira Amari, Japanese Economics Minister: “We would like to hopefully resolve the difficult issues at hand, discussing them thoroughly; so that this session will be the last meeting.”

These low-cost Vietnamese shirts and blouses rarely make it on to the US market.

But the proposed TPP Free Trade Agreement might change that: by 2020, Vietnam hopes to be exporting clothing, worth €23 billion a year.

US companies are worried that their home market will be swamped by budget-competition — and they’re insisting on strong regulation.

But there are also other unresolved TPP issues.

Malaysia, Singapore and Vietnam are being pressured to reduce state support for government-linked companies, in order to give foreign competitors a level playing field for government contracts.

Many want to see traditionally protected sectors, such as those for milk and dairy products, opened up. That would offer Australia, New Zealand and Japan new markets.

And the US wants patent protection for some medications to be guaranteed for twelve years.

The main aim of the TPP is to do away with trade barriers . . . and open the door to more investment.

The United States is urging its negotiating partners to ratify the Trans-Pacific Trade Agreement at the governmental level by the end of the year.

Questions

1. The heads of state (presidents and prime ministers) of Pacific Rim nations gathers for a summit in Hawaii. True or false?

2. Did they all have a common, unifying goal and agenda (of establishing complete free trade)?

3. Was the Japanese Foreign Minister explicit, specific and detailed about the negotiations; or vague, ambiguous and general?

4. What was an example of Vietnam’s aim? Does everyone fully support that?

5. How might the economic systems of Malaysia, Singapore and Vietnam be characterized: capitalist, socialist, mixed-economies, Keynesian, Friedman-type?

6. “The US wants patent protection for some medications to be guaranteed for twelve years.” What does this mean? Why do they seek this?

7. The ultimate goal of the TPP is the removal of quotas, tariffs, and state subsidies. Is this right or wrong? Does everyone wants to see quotas, tariffs, trade barriers and subsidies eliminated?

8. What do Americans want? Are they unified or divided about the TPP Trade Agreement?
 
 
A. Describe the economic policies or business environment of your country.

B. What are the pros (advantages, benefits) of free trade?

C. What are the cons (disadvantages, drawbacks) of free trade?

D. Would you, your organization, city and country benefit or lose out from free trade?

E. Should there be (complete) free and open trade among regions or nations?

F. What will happen in the future?