Lowy Institute for International Policy | The Trans-Pacific
Partnership
Overview The Trans-Pacific Partnership (TPP) is an ambitious project.
It is a preferential trade agreement currently under negotiation
across 12 countries with a sum GDP of $28 trillion and a population of
800 million. It will address not only trade but intellectual property,
legal and institutional issues, and environmental issues. It is
difficult to know what specific issues will be agreed because the
progress of the negotiations is not clear. Some information has been
leaked but the public is still largely in the dark. The TPP has been
billed as a ‘21st century trade agreement’ which covers a much
broader scope than just trade. This new approach is not without
controversy. There are fears that intellectual property provisions
will prove costly for emerging economies, and even developed economies
like Australia. Investor-state resolution procedures buttress foreign
investors’ ability to legally challenge sovereign governments and
are especially contentious. Australia has tended to shun these
provisions in previous free trade agreements, but now appears to be
open to their inclusion. The TPP is part of a wider pattern of trade
moving away from multilateralism. In the past, trade policy was
liberalised through the multilateral settings of the General Agreement
on Tariffs and Trade and then the World Trade Organization. In the
last twenty years, these multilateral efforts have yielded frustrating
results and many countries have turned to bilateral and regional trade
agreements. The TPP and the Transatlantic Trade and Investment
Partnership (TTIP) between European states and the US are symptomatic
of this shift. However, preferential agreements can lead to trade
diversion rather than trade creation so there is disagreement among
economists as to whether this change is positive on the whole. In the
International Economy Program, we continue to focus on developments in
the TPP. Some examples of our work include: Will the Trans-Pacific
Partnership be a good deal for Australia? Different perspectives on
the Trans-Pacific Partnership. The meeting of economics and
geopolitics in the Trans-Pacific Partnership. Will Congress fast-track
Obama’s Trans-Pacific Partnership? What the Lowy Institute does
The Lowy Institute has approached current and future trends in the
global trading system from several angles. In addition to the work on
trade undertaken by the International Economy Program, the G20 Studies
Centre has produced several outlooks and perspectives on the role of
trade within global economic governance generally, and within the G20
process specifically. International trade and governance of the global
trading system will continue to be an ongoing focus for the
International Economy Program and the G20 Studies Centre.