Trans Pacific Partnership

The Economic Impact of the Trans Pacific Partnership

Randy R. Eichholz

William Woods University

BMT 524 Economics for Managers

July 30, 2015

ABSTRACT

The Trans-Pacific Partnership (TPP) as it currently stands is somewhat of a mystery to all but a few people in each of the negotiating member countries; those people in all circumstances are a handful of diplomats and powerful business members in each country. As preferred treatment agreements go the TPP will be the largest of its kind, and a new force in the world effecting trade, commerce, health care, the environment, copyrights, and all aspects of the world economy. “Altogether, a fully realised TPP would cover 40% of the global economy. It would also encompass one third of all global trade. Those close to the negotiations say that it could raise global economic output by US $300 billion every year” (Spasic, 2015).

With an agreement this large in size and scope there are many concerns about the secrecy involved in the negotiating tactics. In fact, once the TPP becomes law, “the negotiating documents will remain confidential for four years after the negotiations are concluded or abandoned” (Pattemore, 2015).

As monumental as the TPP is and as secretive as it seems, there is a lot we know and much to surmise about how the world economy may be shaped by such an agreement. The TPP seems to be a necessary evil in allowing more of the world to play on the same playing field when it comes to the global economy. It will also have the ability to bring many people in the world up out of poverty, but there are costs associated with it, many we do not know of yet.

UNDERSTANDING THE TRANS-PACIFIC PARTNERSHIP

From the onset the Trans-Pacific Partnership (TPP) is grand in its ambition and goals. “The truth is that the TPP is controversial as a result of its broad ambitions. It’s attempting to bind together a diverse, cross-continental bloc under one economic umbrella. For many, that’s problematic...