Trans-Pacific Partnership facts for kids
The Trans-Pacific Partnership (TPP) was a big agreement about trade. It was planned between many countries around the Pacific Ocean. This agreement was about different rules for how countries do business together.
The TPP aimed to make it easier for countries to trade with each other. It wanted to lower things like tariffs, which are taxes on goods coming into a country. It also wanted to create common rules for intellectual property, like patents and copyrights. The agreement also set standards for labour law (rules about workers) and environmental law (rules to protect nature). Plus, it had a way to solve disagreements between investors and countries.
Contents
What is the Trans-Pacific Partnership?
The Trans-Pacific Partnership, or TPP, was a special kind of deal called a free trade agreement. It was created on October 5, 2015. The main idea was to make it simpler and cheaper for countries around the Pacific Ocean to trade goods and services.
Why was the TPP created?
The countries involved wanted to boost their economies. They believed that by removing barriers to trade, more goods would be bought and sold. This could lead to more jobs and better prices for people.
Who were the TPP countries?
The TPP involved 12 countries from the Pacific Rim. These included:
- Australia
- Brunei
- Canada
- Chile
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore
- United States
- Vietnam
These countries worked together to create the rules for the agreement.
What did the TPP aim to do?
The TPP covered many important areas related to trade and business.
Lowering Trade Barriers
One main goal was to lower or remove tariffs. Tariffs are like extra taxes on products that come from other countries. When tariffs are lower, products can be cheaper, which is good for shoppers. It also makes it easier for businesses to sell their goods across borders.
Protecting Ideas and Inventions
The TPP also had rules about intellectual property. This means protecting things like:
- New inventions (patents)
- Books, music, and movies (copyrights)
- Brand names and logos (trademarks)
The agreement aimed to make sure these ideas and creations were protected in all member countries. This helps encourage new inventions and creative works.
Rules for Workers and the Environment
The TPP included standards for labour law and environmental law. This meant that countries agreed to follow certain rules to:
- Protect workers' rights, like fair wages and safe working conditions.
- Protect the environment, like preventing pollution.
These rules were important to make sure trade was fair and responsible.
Solving Business Problems
The agreement also set up a way to solve disagreements. This was called an investor-state dispute settlement mechanism. If a company from one country felt that another country's government had treated them unfairly, they could use this system to try and fix the problem. It was a way to make sure businesses felt safe investing in other TPP countries.
What happened to the TPP?
The TPP was signed by the 12 countries in 2016. However, it needed to be approved by each country's government before it could start. The United States decided not to join the agreement in 2017. Because the U.S. was a very large economy, the TPP could not go forward as planned.
What came next?
After the U.S. left, the remaining 11 countries decided to create a new agreement. They called it the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This new agreement kept most of the original TPP rules. It shows that many countries still believe in the benefits of free trade.
