Trans Pacific Partnership trade agreement negotiations conclude
Trans Pacific Partnership trade agreement negotiations concluded yesterday after having gone through a five year period of talks. Among the many industries that will enjoy lower tariff barriers in trade conducted between the signatory nations are those of auto parts, textiles and medical devices.
On October 5, 2015, Trans Pacific Partnership (TPP) trade agreement negotiations between Mexico and eleven other Pacific Basin nations were finalized. The negotiation, and subsequent implementation, of the TPP will affect twenty-five percent of world trade, and will govern commercial relations between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the United States.
Those that have analyzed the Trans Pacific Partnership trade agreement negotiations are of the opinion that it will open the door which will enable Japan, Singapore and Vietnam to enhance their competitive positions in the much valued US market. Mexican economic officials realize that they have had a long twenty year advantage over the other TPP countries in the US market, but are confident that the risks of this change are outweighed by the opportunities that will arise from greater duty free access of Mexican made products throughout the Pacific Basin. While countries such Malaysia, Singapore and Vietnam are economies that are considered to be focused on manufacturing activities could become direct competitors for Mexico for US sales, others like New Zealand
would represent further competition for Mexico in the agricultural sector.
Of the twelve nations that saw the Trans Pacific Partnership trade agreement negotiations to their conclusion, Mexico has preexisting free trade relationships with five. Among them are:
- United States
Because the United States and Canada are the customers for seventy percent of Mexico’s exports, Mexican economic officials see a successfully negotiated TPP agreement as a conduit by which to create and deepen commercial relation with a wider diversity of trading partners.
Although Trans Pacific Partnership trade agreement negotiations have been wrapped up, implementation requires that member nations now ratify the agreement in their respective congresses and through their legislative processes. It is expected that, in particular, in the United States and Canada, significant political obstacles to passage will have to be overcome.
Of the countries that participated and concluded Trans Pacific Partnership trade agreement negotiations, is the fourth most important trading nation.
Read the primary source for this post in its original Spanish at El Financiero.