TPP pushes the frontier of trade and investment in goods and services to new areas where gains can be significant, IMF says in statement.
The Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, said in a statement that the agreement reached by countries negotiating the TPP is a very positive development.
The IMF has called for policy upgrades to avoid a new mediocre in the global economy and rekindling trade is an essential component of this agenda. “The agreement is not only important because of the size, as the signatories account for about 40 per cent of global GDP, it also pushes the frontier of trade and investment in goods and services to new areas where gains can be significant,” she said.
She said the IMF would need to review all of the details before offering a comprehensive assessment, including the transitional effects and spillovers. “But I expect that the TPP can pave the way to a new generation of deep trade integration efforts,” she said. “I encourage other countries to renew their efforts to complete negotiations and the broader international community to reignite multilateral trade initiatives to ensure a cohesive global trading system.”
The result of the negotiation is considered a high quality agreement with comprehensive and balanced economic growth that supports the creation and maintenance of employment, promotes innovation, productivity and competitiveness, raises living standards, reduces poverty, and improves transparency, good governance, labor protection, and environmental protection.
There are five main characteristics making the TPP a landmark agreement of the 21st Century, creating a new standard for global trade while referring to the issues of the new generation. Its features include:
1. Comprehensive market access
2. Regional approach in making commitments
3. Solves new challenges to trade
4. Covers all elements related to trade
5. Foundation for regional integration
The TPP includes 30 chapters related to trade issues, including trade in goods and continued trade facilitation and customs, hygiene and animal and plant quarantine, technical barriers to trade, trade remedies, investment, services, e-commerce, intellectual property, labor, environment, the development of the TPP, competitiveness and inclusiveness, dispute resolution, and exceptions.
It also mentions emerging issues such as the internet and the digital economy, the growing involvement of State-owned enterprises in trade and international investment, and the ability of small businesses to take advantage of the trade agreements.
The TPP gathers together a group of countries diverse in geography, language and history, scale, and level of development. All TPP countries recognize that diversity of development is a unique asset but also requires close cooperation and capacity building for countries at a lower level of development.
30 Chapters of the TPP:
1. Terms and Definitions
2. Trade in Goods
4. Rules of Origin
5. Management of Customs and Trade Facilitation
6. Sanitary Measures and Quarantine of Animals and Plants
7. Technical Barriers to Trade (TBT)
8. Trade Remedies
10. Trade in Services Across Borders
11. Financial Services
12. Temporary Entry of Business Persons
14. Electronic Commerce
15. Government Procurement
16. Competition Policy
17. State-owned Enterprises (SOEs)
18. Intellectual Property
21. Cooperation and Capacity
22. Competition and Business Facilitation
24. Small and Medium Enterprises
25. Mounting Policy Environment
26. Transparency and Anti-Corruption
27. Terms of the Administration and Institution
28. Dispute Resolution
30. Final Provisions