New East Asia Foundation study analyses the Trans-Pacific Partnership (TPP) and the Republic of Korea, Japan and the US priorities
The author of the paper emphasizes that the Trans-Pacific Partnership (TPP) agreement is a game changer in the sense that it goes a step beyond free trade and establishes new norms in trade and the world economic order. It also restructures the Asian regional architecture, closely linking its economy and security. Moreover, foreign and domestic policies are intimately joined in the TPP. The TPP includes most issues that any FTA would: goods, rules of origins, pharmaceutical patents, trade remedies, sanitary and phytosanitary issues (SPS), technical barriers to trade (TBT), services, intellectual property rights, and government procurement. It covers a large portion of these issues which are not regulated under WTO rules and norms. It is expected to provide the basis for new trade regulations and stimulate economic integration among the members.
The author also argues that he TPP will shift the center of the FTA game, persisting from the late 1990s, from bilateral FTAs to mega-FTAs. The TPP will fundamentally change the nature of the game, because it will stimulate mega-FTAs in the international trade arena.
One of the reasons of the TPP agreement conclusion was continuing criticisms that the expected economic effects of the FTAs were not occurring and although many East Asian countries invested much time and many resources to conclude a number of FTAs, the beneficiary companies were not properly utilizing them.
Taking into account the government of the Republic of Korea decided to participate in the TPP, the author recommends to review the timing and conditions of participation. So, for example the Republic of Korea may pursue negotiations independently or consider forming a group with other countries, including Indonesia, Thailand and the Philippines, who have showed interest in participation. After conclusion of the TPP, much attention has been focused on the RCEP. Depending on the perspective, the TPP and RCEP can be seen as either contradictory or complementary.
Full text at the East Asia Foundation web-site