Diplomatist Magazine Diplomatist August 2018 | Page 30

GLOBAL CENTRE STAGE
JAPAN, BRITAIN AND
THE NEW TRANS-PACIFIC
PARTNERSHIP
BY DIPLOMATIST BUREAU
A
s the US moves out of regional groups and pushes
its economy towards more protectionism, trade wars
seem set to explode on the global stage. The trade
face-off with China is almost complete; America’s sanctions
on Iran and Russia (through CAATSA) have made the latter
two countries’ traditional allies to re-think trade policies with
them. But apart from individual blockades, the US has pulled
out of the Trans-Pacifi c Partnership (TPP) accord – a deal
which America, under the former President Barack Obama
– had taken a lead on. The TTP is made up of 11 countries –
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore and Vietnam – which make
up 13.4 percent of the world’s wealth.
As the current American President Donald Trump pulled
his country out of the TPP, the remaining nations remained
fi rm on their commitment to essentially convert the Asia-
Pacifi c region into a mega free-trade zone and signed the
Comprehensive and Progressive Agreement for Trans-Pacifi c
Partnership (CPTPP) on 8 March 2018. The CPTPP is a
new trade agreement suspending the application of certain
provisions set out in previous negotiations on the TPP. But
with the US out, who’s going to take the pact to fruition?
Why is the CPTPP Important?
The CPTPP, once implemented, would help in developing a
seamless supply chain in Asia Pacifi c through increased levels
of liberalization as well as better trade and investment rules.
These, in turn, will lead to reduced costs, better effi ciency and
creation of employment opportunities – thus strengthening
economic growth in the region and the world. Moreover, the
30 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 8 • August 2018, Noida