This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-32498715

The article has changed 7 times. There is an RSS feed of changes available.

Version 4 Version 5
TPP: What is it and why does it matter? TPP: What is it and why does it matter?
(4 months later)
International trade is a controversial issue at the Democratic Party convention in Philadelphia. US President-elect Donald Trump has promised to abandon the Trans-Pacific Partnership (TPP) trade deal as soon as he takes office.
Senator Bernie Sanders, who unsuccessfully sought the party's Presidential nomination and has given Hillary Clinton his backing, used the event as a platform to express his opposition to one of President Obama's big trade deals. The TPP, signed by 12 countries in February, covers 40% of the world's economy. But all 12 nations need to ratify it, and Mr Trumps comments suggest that simply won't happen.
It's called the Trans-Pacific Partnership or TPP. It has been agreed but not yet ratified. Mr Sanders told the convention, to cheers from his own supporters, that it must not be ratified. Outgoing US President Barack Obama treated trade deals as a priority, but US opponents have characterised the TPP as a secretive deal that favoured big business and other countries at the expense of jobs and national sovereignty.
The issue has become even more politically contentious than it already was with groups in both main parties concerned about trade liberalisation agreements. TPP in a nutshell
President Obama has treated them as a priority, while opponents see them as harming the US economy, as driven by big business and as being conducted in excessive secrecy. The member states are the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
The TPP is not the only one, but it is a very big one and the negotiations are complete.
It involves 12 countries: the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru.
The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.The pact aims to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth.
Member countries are also hoping to foster a closer relationship on economic policies and regulation. Members had also hoped to foster a closer relationship on economic policies and regulation.
The agreement could create a new single market something like that of the EU. The agreement was designed to potentially create a new single market, something like that of the EU.
Most goods and services are involved, but not all tariffs - which are taxes on imports - are going to be removed and some will take longer than others. In all, some 18,000 tariffs are affected. How big a deal is the TPP?
For example, the signatories have said they will either eliminate or reduce tariffs and other restrictive policies from agricultural products and industrial goods. Pretty big. The 12 countries have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade.
Tariffs on US manufactured goods and almost all US farm products will go almost immediately once the deal is ratified. The deal was seen as a remarkable achievement given the very different approaches and standards within the member countries, including environmental protection, workers' rights and regulatory coherence - not to mention the special protections that some countries have for certain industries.
On textiles and clothing, they will be removing all tariffs, but while the US Trade Representative says most tariffs will be removed immediately after the deal is ratified, "tariffs on some sensitive products will be eliminated over longer timeframes as agreed by the TPP Parties". And that's why the prospect of the US pulling out is being seen as such a blow for those who signed up.
On trade in services, they have agreed that free trade would be quite a good thing, and in some areas, they are going to liberalise trade. Which goods and services are involved?
The full text of the TPP agreement - which runs to 30 chapters - has now been published and you can read it all here. Most goods and services traded between the countries are named in the TPP, but not all tariffs - which are taxes on imports - were going to be removed and some would take longer than others. In all, some 18,000 tariffs are affected.
You can find more on the specific industries involved here. For example, the signatories said they would either eliminate or reduce tariffs and other restrictive policies from agricultural products and industrial goods.
Under the agreement, tariffs on US manufactured goods and almost all US farm products would go almost immediately.
On textiles and clothing, they would be removing all tariffs, but while the US Trade Representative said most would be removed immediately after the deal is ratified, "tariffs on some sensitive products will be eliminated over longer timeframes as agreed by the TPP Parties".
They had agreed that free trade in services would be quite a good thing, and in some areas, they were going to liberalise trade.
The full text of the TPP agreement - which runs to 30 chapters - can be read here.
And you can find more on the specific industries involved here.
When did it start?
It began with the P4 trade agreement between just four nations - Brunei, Chile, New Zealand and Singapore - that came into effect in 2006.It began with the P4 trade agreement between just four nations - Brunei, Chile, New Zealand and Singapore - that came into effect in 2006.
That deal removed tariffs on most goods traded between the countries, promised to cut more and also to co-operate on wider issues such as employment practices, intellectual property and competition policies.That deal removed tariffs on most goods traded between the countries, promised to cut more and also to co-operate on wider issues such as employment practices, intellectual property and competition policies.
Pretty big indeed. The 12 countries have a collective population of about 800 million - almost double that of the European Union's single market. The 12-nation would-be bloc is already responsible for 40% of world trade. What do critics say?
The deal is a remarkable achievement given the very different approaches and standards within the member countries, including environmental protection, workers' rights and regulatory coherence - not to mention the special protections that some countries have for certain industries. Plenty of people will be happy if the TPP never sees the light of day.
They argue it it has been a not-so-secret gambit to keep China at bay - which is not part of the TPP. For its part, China has given it the TPP a cautious welcome. Critics argued it was a not-so-secret gambit to keep China at bay - it is not part of the TPP. For its part, China gave the TPP a cautious welcome but could be the big winner of the TPP failing.
Others claim it paves the way for companies to sue governments that change policy on, say, health and education to favour state-provided services. Others said it would pave the way for companies to sue governments that change policy on, say, health and education to favour state-provided services.
The TPP will also intensify competition between countries' labour forces. The TPP was also seen as intensifying competition between countries' labour forces.
But the biggest criticism has been of what the campaigners allege were secretive negotiations, in which governments were said to be seeking to bring in sweeping changes without voters' knowledge.But the biggest criticism has been of what the campaigners allege were secretive negotiations, in which governments were said to be seeking to bring in sweeping changes without voters' knowledge.
Defenders say the reason the negotiations were not made public was because there was no formal agreement on them.Defenders say the reason the negotiations were not made public was because there was no formal agreement on them.
Is this the same thing as TTIP?
Confusingly not.Confusingly not.
The Transatlantic Trade and Investment Partnership, now generally known as TTIP, is a deal to cut tariffs and regulatory barriers to trade between the US and member states of the EU. Negotiations here are at an earlier stage.The Transatlantic Trade and Investment Partnership, now generally known as TTIP, is a deal to cut tariffs and regulatory barriers to trade between the US and member states of the EU. Negotiations here are at an earlier stage.
You can read more about it here.You can read more about it here.
The text of the agreement will have to be signed and then ratified by all 12 signatories. Details of how the deal will be implemented will be argued out in individual countries' legislatures. What happens next?
In the US, it comes before Congress in the midst of a presidential election year, which is likely to turn it into a major political football within both parties. That has become the pertinent question since Donald Trump's election win.
However, Congress has granted President Obama "fast-track" authority over the deal, which only allows lawmakers to either reject it or ratify it. The text of the agreement has to be signed and then ratified by all 12 signatories. Details of how the deal will be implemented would be argued out in individual countries' legislatures.
To take effect, the deal has to be ratified by February 2018 by at least six countries that account for 85% of the group's economic output. And this means that Japan and the US will need to be on board. To take effect, the deal has to be ratified by February 2018 by at least six countries that account for 85% of the group's economic output. And this means that Japan and the US will need to be on board.
But Mr Trump's comments suggest Congress will be directed to clearly reject it - if they get to vote on it at all.
Some countries, including New Zealand, have suggested some sort of deal may be possible without the US. There has been loose talk of changing some of the conditions to let Mr Trump approve it without losing face. But given the rhetoric coming out of Trump Towers, that looks unlikely.
And Japan's Prime Minister Shinzo Abe has said a TPP without the US - and its market of 250 million consumers - would be "meaningless".