Just a year ago, practically nobody thought it possible. The United States had just abandoned Trans-Pacific Partnership Agreement (TPP), one of Obama administration's flagship projects, and began its particular journey into desert of commercial isolationism. The odds of agreement going ahead without world's first power were remote. But sometimes remote is also fulfilled: 13 months later, Mexico, Chile, Peru, Canada and seven countries in Asia (Brunei, Japan, Malaysia, Singapore and Vietnam) and Oceania (Australia and New Zealand) have sealed this Thursday one of largest trade agreements in world. The firm arrives a few hours before Trump administration signs its first major tariff decree, which will tax imports of steel and aluminum, and in full renegotiation of North American Free Trade Agreement (FTA), in which Mexico and Canada are played Much of its economic growth in coming years. The moment could not be more symbolic to send a clear message: There is life beyond United States.
Renamed as a comprehensive and progressive Treaty of Trans-Pacific Partnership (and known as TPP11) after Washington gets out of boat, trade agreement forms a tariff-free market of 500 million of consumers that sums up almost sixth Part of world GDP. A giant with a presence on three continents that, according to all international trade specialists consulted, is at forefront of trade regulations and facilitation with a radically new approach. The Agreement shall enter into force when approved in at least six (half plus one) signatory countries.More information
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"The TPP11 lays foundations for future trade," emphasizes Ignacio Bartesaghi, director of International Business and Integration Department of Catholic University of Uruguay and author of several scholarly articles on Treaty. "It is a great platform to capture investments that position signatories clearly at forefront of world in terms of standards and harmonization of trade rules. It will greatly improve business environment and allow se countries to adapt to business conditions that rest will have in future. "Obstacles overcome
"No one thought agreement would survive without U.S.," says Chilean foreign headliner, Heraldo Muñoz. The first measure of Donald Trump as president was withdrawal of his country from deal. It opened up a new era in which Washington was n capitidisminuido side of opponents of trade liberalization. "The signing of this agreement, however, is a powerful political sign of openness, in support of clear rules for international trade and opposition to protectionist measures," adds host minister in declarations to country.
With signing of Treaty, Pacific basin is at forefront of free trade and globalization at a time when both principles go through a critical trance. At arrival of Trump in charge of greater power of planet has joined boom of populist movements in Europe- Brexit is good proof of it-contrary to trade. This Thursday, 11 signatories to new TPP send opposite message: strong opposition to protectionism and economic confrontation between countries and will to strengn ties in favor of economic growth of all parties involved. "It is a powerful sample and comes at a time when we are about to enter danger of a trade war that would hurt everyone," adds Chilean chancellor, one of most open countries in Latin America and world , with up to 26 agreements with a total of 64 economies.
"Mexico and Canada--in full renegotiation of FTA with US--and Japan--which raises its profile of China's undisputed competitor in Asia--are great winners of TPP11," values Bartesaghi. "It's natural for Mexico to worry about presence of Vietnam [a manufacturing platform that will compete with you in many segments], but jump that hits Asia is tremendous at a time when it needs it more than ever," he adds in reference to difficulties at Raviesa renegotiation of largest trade treaty in world, which unites United States, Mexico and Canada since 1994. In this context, reducing dependence on first world power is fundamental.
The or two Latin American nations in Liza, Chile and Peru-with which Mexico also shares membership in Pacific Alliance-, even with bilateral trade agreements with many of Member States, will gain access to markets as powerful as Japanese-in previous Chilean agreement with Nippon Country, for example, many products were still subject to tariffs-, Australian or Canadian.
When Trump withdrew his country from agreement in January 2017, remaining 11 countries that formed TPP were not clear on way. They wondered wher it was really possible to continue without United States, which began a policy of greater protectionism and preference for bilateral agreements. It was in Chilean city of Viña del Mar where y began to draw lines to keep alive largest block of integration of Asia-Pacific. Then meetings were held in Canada, Vietnam and Japan "and countries became enthusiastic little by little," says Muñoz. of a single leadership-- American--was passed to a coral: Japan, arguably greatest power of treaty, assumed a greater share of responsibility; Australia stepped forward; Mexico and Canada stepped on accelerator to diversify ir trading matrix into full FTA renegotiation; And Chile took regional reins.
In that process of reencarrilamientoing agreement, Governments opted to undertake small adjustments, but not major changes. The access to markets was not touched- heart of any trade treaty-, only a score of rules that caused discomfort in some countries and which had been included in previous treaty by US insistence--especially in field of property I--was excluded. Ntelectual-and exacerbated its inclusive dimension, which now includes perspectives on gender, environment and labor rights. The base is, paradoxically, same one that put previous American administration above table. And although Trump, in one of his many contradictory and conflicting speeches has not entirely rejected possibility of reconsidering agreement, at this point it seems difficult to turn back. At least, in short term.