Friday, 11 November 2011

Emerging economies setting up the scene for a new international trade - The case of the Trans-Pacific Partnership

US President Barack Obama will travel to Honolulu this weekend for the Leaders’ Meeting of the 21-nation Asia-Pacific Economic Cooperation bloc. The fact that the president hopes to advance a trade deal that could shape the future of U.S. commercial relations overall, and with fast-growing Asia in particular shows how emerging economies are re-shaping international commerce.
While the traditional partner economies in Europe are suffering for the financial crisis pushed by the government debts. The creation of the single free-trade community with Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam would give to the United States the chance to pivot from austerity politics to economic revival. The Trans-Pacific Partnership would lower tariffs and other trade barriers among the nine countries. The U.S. hopes the promise of open access will entice Canada, Indonesia, Japan, Mexico and others to join and eventually extend the free-trade zone throughout the Pacific Rim.
TPP is important because the U.S. this year exported more to Pacific Rim countries than to Europe, according to the Commerce Department. As Bloomberg News has pointed out, U.S. companies sell more to South Korea than to France, and more to Taiwan than Italy. Last year, exports to the region supported 850,000 U.S. jobs. APEC comprises 40 percent of the global population and the economies of the member countries are growing faster than the world average generating together the 56 percent of global GDP in 2010.
The new commercial routes of the Trans-Pacific Partnership

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