Friday, October 9, 2015

The Trans-Pacific Partnership: a Latin-American perception

This week a significant trade agreement has been signed by twelve Nations around the Pacific Ocean. At the heart of this pact there is the willingness to lower the trade barriers that affect good and services within this enormous region.

Countries that have approved the Trans-Pacific Partnership agreement are: Australia, Canada, Japan, Malaysia, Mexico, Peru, Vietnam, Brunei, Vietnam, Chile, Singapore and United States. A most curious fact is the non-involvement of a substantial economic power in the Pacific area such as China. The main official reason was that China would not accept new standards in trade and investment that the treaty wants to follow. Experts have argued that the purpose if the agreement is to neutralize the big Asian country.

Nevertheless, an outstanding figure materializes while analyzing that these twelve signatory members together represent 40% of the global economy. Another fact that has called my attention is that there few Latin-American Countries that adhered to it, only accepting the agreement were: Chile, Peru and Mexico.

Latin-American presence is characterized mainly by countries that jointly form a regional trade bloc named the Pacific Alliance, Colombia the fourth country is not yet part of the T-PP although it is considering to be part of it. After the creation of the Pacific Alliance in June 2012, which pursues a free trade or at least lowering trade barriers, two main trade agreements divide the region in a virtually vertical line from North to South. In contradiction to the Pacific Alliance we can notice the existence of the Mercosur. Formed in 1991 Mercosur has not done a relevant effort to promote its inter-regional interaction with other world market. However, through the years it has created an endless number of bureaucratic organisms in order to maintain a seemingly political integration.

The presence of three of the Pacific Alliance’s nations that sanctioned the new Trans-Pacific Agreement once more reveals the difference between Latin-American postures towards the openness of global trade. 

By Barbara Bordon

Based on the readings of WSJ's articles:

1 comment:

  1. Barbara,
    I am stilling reeling from your visual. I read your article and it is very informative, but the visual is very powerful to me. It is not often that I get to see the U.S. as NOT the center of the world. With all the publications I randomly pick up, the United States is front and center.
    Thank you for an analysis of a difference perspective.