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11/24/2015 - Report
ic_blogtagEconomic OutlookTradeBusiness ClimateTradeTrade agreements
The Trans-Pacific Partnership (TPP) is a mega trade agreement bringing together 800mn consumers and USD28tn of wealth. Once ratified by all TPP members, this new trade framework can boost regional GDP by +USD38bn over the first two years of implementation.

Japan, New Zealand and Vietnam would benefit the most: consumers from cheaper goods, exporters from lower trade barriers in new markets.

The Knowing (American R&D e.g.), The Doing (Vietnamese manufacturing) and The Having (Canadian natural resources) countries will complement one another.

Chemical, Machinery and Equipment, and Electronics supply chains will benefit the most; peer pressures will help improve business practices regionally.

Risks to TPP's adoption stem from perceived currency manipulation, possible negative impacts on key national industries (Agrifood and Automotive in particular) and social discontent. TPP success will also be dependent on outsiders' trade policy response.

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