What is the TPP?: Trans-Pacific Partnership

President-elect Donald Trump has announced in a video that he will withdraw United States from the Trans-Pacific Partnership Agreement (TPP).

Two months before his assumption of the presidency, the newly elected president has presented in a video a package of measures to be implemented in the first 100 days of his government. These measures include the withdrawal of the United States from the TPP.

What is TPP? Why was it created? Here are some key points:

What is the TPP?

The Trans-Pacific Partnership (TPP) was signed in October 2015 to liberalize trade and investments and create a free trade area in the Pacific basin. The signing of the agreement by 12 countries was the largest free trade agreement entered the United States in the last 20 years.

The agreement allows the liberalization of tariffs for the signatory countries. It is also included the unification of the technical specifications that  products or services must have to enter a country.


The agreement was presented as a balanced and ambitious agreement. A comprehensive agreement that would promote economic growth and job creation, and aimed to improve the innovation, productivity and competitiveness of the signatory countries. The TPP regulated many issues, from labor regulation to the environment, through the dairy trade, copyright, state investments and patents.

Who signed the agreement?

A total of 12 countries signed the agreement, leaving the door open to possible incorporations such as China or South Korea.

The Trans-Pacific Partnership established a new free trade framework for 12 countries in the Pacific Basin: United States of America, Canada, Mexico, Peru, Chile, Japan, Vietnam, Brunei, New Zealand, Malaysia, Australia


These 12 countries (5 in America, 5 in Asia and 2 in Oceania) account for 40% of world GDP and 11% of the world’s population (approximately 800 million people).

In addition some countries showed their willingness to enter into the treaty: Colombia, Taiwan, Thailand, Indonesia, the Philippines and Cambodia.

Why was it created?

The TPP was created to curb the expansion and advancement of China in the Pacific Region. It is one of the most visible parts of the Barack Obama’s strategy. The Agreement became a fundamental tool for focusing US policy on the Pacific region to the detriment of Europe and the Middle East. The TPP allows American products entrance in new markets .

The pact was presented as a key influence tool to the United States in the Pacific. The predictions that China will surpass the North American country like first world economy, seduced many in the attempt to restrain the power of China in the Pacific

The main defenders were the big companies, mainly of the textile, automobile and pharmacological sector.

In fact it is not the first time that President-elect Trump threatens to leave the TTP, which he has called “potential disaster”for U.S. Before being elected he warned about his intentions to abandon the treaty. The President-elect declared on November 21 his intention to notify the intention of the United States to leave the TPP.


Among the main criticisms of the pact were the relocation of companies in jurisdictions with environmentally lax regulations or  keeping the door open to the “export” of US jobs to low-wage countries.

Moreover, in the Democratic ranks there were discrepancies. Bernie Sanders, Democrat Senator from Vermont,  pointed “Wall Street and big companies won again. It is time to prevent large multinationals from manipulating the system to increase their profits at our expense “

Will the United States finally leave the TPP? What effects can it’s departure have? Maybe U.S. will leave the TPP maybe not. We have to wait a couple of months to find it out.

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