Thursday, February 4, 2016
Twelve nations with a collective population of 800 million persons signed a new trade deal today known as the Trans Pacific Partnership or TPP. The twelve nations include the United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. They account for 40% of world trade.
The TPP aims to broaden and deepen economic ties between these nations. The agreement will result in a reduction in 18,000 tariffs. Some tariffs will be eliminated immediately; others will be reduced or eliminated over time. The text of the agreement is available here.
The TPP will now require ratification by the various signatories before it will become effective, which is likely to take some time.