Trans-Pacific Strategic Economic Partnership Research Articles

Regional contents in exports by major trading blocs in the Asia-Pacific region

PurposeThe purpose of this paper is to calculate regional contents in the exports of the major regional blocs to the world, Trans-Pacific Strategic Economic Partnership (TPP), and Regional Comprehensive Economic Partnership (RCEP), respectively, to find the backward trade linkages between them instead of normal forward linkages.Design/methodology/approachTo calculate “a region” content in intermediate and value-added exports, this paper uses OECD’s inter-country input-output table (ICIOT), and tries to decompose the contents of trade. Using the information of ICIOT, Koopman et al. (2014) and Wang et al. (2013) decompose gross exports of a country’s exports.FindingsTPP is a loosely tied bloc featured by openness to the Asia-Pacific region. Trade linkages between members are stronger in RCEP than those in TPP, particularly in the trade of intermediate goods. Trades in RCEP are closely connected to exports to TPP, but the opposite direction is not clear.Research limitations/implicationsFirst of all, the recent base year of the data on value added in trade is 2011, which can be regarded as a little bit out of date. Therefore, it should be cautious in interpreting the results in that it may not reflect the characteristics of current trade. Second, this paper uses ICOIT instead of world input-output table.Practical implicationsA large portion of trades in RCEP and TPP is triggered by a global production network (fragmentation, vertical specialization), different from traditional trade focusing on inter-industry trade or competition between countries. Thus, the formation of TPP or RCEP is predicted to stimulate trade of the other instead of discriminating nonmember countries.Social implicationsIn particular, the authors have special concern in the backward linkages between RCEP and TPP, the distinct characteristics of the two regional blocs and, finally, major countries’ preferences of the one over the other and industrial conflicts toward TPP or RCEP even in an economy.Originality/valueAlthough this paper uses the approach by Baldwin and Lopez-Gonzalez, this paper is the first research on the analysis of the export contents in major trading blocs in the Asia-Pacific region.

Оценка изменения уровня экономической безопасности Японии при реализации Соглашения о Транстихоокеанском Стратегическом Экономическом Сотрудничестве (экономическая кооперация и экономическое противоборство)

Оценка изменения уровня экономической безопасности Японии при реализации Соглашения о Транстихоокеанском Стратегическом Экономическом Сотрудничестве (экономическая кооперация и экономическое противоборство)

The opportunity to regulate domestic fishery subsidies through international agreements

Several studies have pointed out that inappropriate fisheries subsidies can have negative effects on marine wild-capture fisheries, mainly due to differences in municipal laws. For the sustainable development of marine wild fisheries, it is necessary to reach an agreement on the regulation of inappropriate fisheries subsidies. After lengthy negotiations, the World Trade Organization (WTO) Negotiating Group of Rules presented a draft text on fisheries subsidies in 2007; however, the WTO has yet to reach a final consensus. Recently, after the Bali Ministerial Conference, participants announced their consideration of setting up a legal framework to regulate fisheries subsidies by means of a regional and multilateral trade agreement. If this does occur, the greatly delayed provisions of the WTO Chair's Draft Text may be put into effect in the Trans-Pacific Strategic Economic Partnership Agreement.

When Economic Interdependence Meets Power Politics: Predicting the Direction of East Asian Regionalism in Asia`s Paradox

Because of rapid economic growth and close economic interdependence, East Asia has recently been in the spotlight of regional integration theorists. Currently, East Asia is being remapped in two ways: one is the Regional Comprehensive Economic Partnership (RCEP); and the other is the Trans-Pacific Strategic Economic Partnership (TPP). This article aims at predicting the winner of inter-institutional balancing between the two tracks from a viewpoint of power politics. To do so, realist hypotheses are made of regional integration and they are tested against the Integration Achievement Score (IAS) data. As a result, newly suggested hypotheses and some conventional ideas are strongly supported. These findings hold, regardless of model specifications and measurement of variables. Next, after analyzing how much the RCEP and the TPP accord with those findings, probabilities are presented showing that the two tracks can achieve regional economic integration. In conclusion, the TPP is expected to become the winner of inter-institutional balancing.

New regional economic partnerships under negotiation

Two potentially competing trading blocs are being negotiated between countries of the Asia Pacific to boost world trade in the absence of progress with the Doha Round of World Trade Organization negotiations. One is the Trans–Pacific Strategic Economic Partnership Agreement (TPP) in which all negotiating parties are also members of Asia–Pacific Economic Cooperation (APEC). This paper outlines the two proposals and discusses some of the expectations of the negotiating parties. It is clear that the TPP concept has led to a number of concerns being raised by the negotiating parties, invitee countries, and external parties including those with vested interests in the outcome of these negotiations. The RCEP concept which is essentially a large multi–lateral free trade agreement raises less concern. The paper then discusses the dilemma facing Thailand which for centuries has been a trading nation and was a founding member of the World Trade Organization. Subsequently Thailand has negotiated a number of bilateral and multilateral free trade agreements. As a leading member of Association of South East Asian Nations (ASEAN) Thailand has sought to engage in free trade agreements with its ASEAN neighbours and their external trading partners.

Vietnam in the TPP Negotiations and Challenges it May Face

It has been almost seven years since Vietnam first experienced its official WTO membership on 2007. At the time of accession, it was envisioned that Vietnam economy would develop rapidly, and the event was hailed as “a turning point” and even “a sacred moment.” Many people in Vietnam said that the country would be “taking off” and becoming “a new Asian tiger”. Then, most enterprises and the Vietnamese feel disappointed with the fact that economic growth has been much lower than expected since Vietnam joined the WTO. There are reasons for such disappointment. First, at that time Vietnamese enterprises did not know or well- prepare for the challenges that lied ahead. Second they were so optimistic about the benefits being received. The history seems to be repeated now when Vietnam are negotiating another important FTA-the Trans-Pacific Strategic Economic Partnership Agreement (hereinafter the TPP) – that is considered as an integration as both breadth and depth level of because it is the largest, most dynamic trade collaboration of 21 century. On the Vietnamese media, major benefits of TPP are analyzed and propagated to create public support in order to conclude the TPP as soon as possible. Even a popular economic research approves that Vietnam is the biggest beneficiary among the TPP countries. Unfortunately, like the WTO, the TPP is not a “delicious cake”, and of course, there is no free lunch for Vietnam. To that respect, the paper aims at researching on the major potential challenges of Vietnam when participation in the TPP so that the community, especially the Vietnamese enterprises, are fully aware of both speculative interest and cost in order to have solutions to minimize the challenges and maximize the opportunities. The paper aims at answering two crucial questions: What is the ambition level of the negotiations? Whether Vietnam is ready for such level of ambition on offers in the TPP and what are the main challenges Vietnam may have to face?To answer the questions, this research paper will be divided into two chapters as follows:Chapter I: “Vietnam’s participation in the TPP negotiations and speculative opportunities”. Serving the introductory purposes, this chapter provides readers with the fundamental knowledge on the TPP negotiations and its ambition level in general, and then Vietnam’s participation and the benefits it may receive in an ideal condition in particular. Chapter II: “Challenges Vietnam may face in the TPP”. This is the main part of the paper which introduces and analyzes the potential negative impacts and difficulties of the proposed regulation in the on-going negotiations for the most important sectors and issues in Vietnam. The chapter is presented with the proposed rules for a sector, then I will analyze the challenge caused by such regulation and finally the solution (if any) for such challenge. First the challenges for textile and apparel sector are analyzed, then for agriculture sector, intellectual propriety rights (IPRs), State-Owned Enterprise reform, legal reform, and labor chapter, respectively.

Bringing the Party Back In: How the DPJ Diminished Prospects for Japanese Agricultural Trade Liberalization under the TPP

AbstractChanges to the institutional structure of trade policymaking are important to understanding why Japan remained largely on the sidelines of the Trans-Pacific Strategic Economic Partnership (TPP) negotiations in 2010-2012. The Democratic Party of Japan (DPJ) embarked on a series of changes to policymaking institutions, which initially empowered the prime minister and cabinet at the expense of pro-agriculture backbenchers in the ruling party. However, the potential for a breakthrough on farm trade substantially diminished as the institutional reforms were reversed, allowing political supporters of domestic farm interests once more to assert their voice and influence in trade policymaking. Tracing the process of DPJ government decision-making on the TPP reveals that ‘bringing the party back in’ was a major factor in preventing Japan's formally joining the TPP negotiations, despite the strong pro-TPP sentiments of DPJ prime ministers, thus limiting prospects for agricultural trade liberalization.

The Shanghai Free Trade Zone -- Motivations and Legal Impacts

The Shanghai Free Trade Zone was launched on September 29, 2013. In light of this development, this paper is aimed at discussing the internal and external motivations of the launch and analyzing the domestic and international legal impacts. The discussion will be divided into three sections. The first section introduces the background of the Shanghai Free Trade Zone. In particular, this section analyzes basic legal documents such as: the Framework Plan, Appendix to Framework Plan and Negative List. The second section focuses on internal and external motivations. Internally, there are three types of predictions on the relationship between China’s launch of the Shanghai Free Trade Zone and political reforms. Externally, there is an on-going evolutionary trade system beyond the WTO, which depends on negotiations of Trans-Pacific Strategic Economic Partnership Agreement (TPP), Trans-Atlantic Trade and Investment Partnership Agreement (TIIP), Trade in Services Agreement (TISA) and Bilateral Investment Treaties (BITs). China has lagged behind in recent years. Currently, China is adopting new policies to gain leverages on such negotiations worldwide. Finally, the third section analyzes the domestic and international legal impacts of the Shanghai Free Trade Zone. Domestically, it has an impact on both legislative procedure and the distribution of central and local legislative powers. Moreover, it has influenced the judicial power and legal practitioners. Internationally, the comparison between Shanghai Free Trade Zone and WTO, Taiwan, Hong Kong and Shenzhen Economic Special Economic Zone respectively indicates how this policy might influence China’s obligations under international and regional treaties.

International Trade Law and Information Policy: A Recent History

In September 2008, the United States Trade Representative (USTR) announced the United States’ intention to join Singapore, New Zealand, Brunei, and Chile in what was then called the Trans-Pacific Strategic Economic Partnership Agreement, a preferential trade agreement. Since then, the agreement has grown in scope and ambition. The negotiations to create what is now known as the Trans-Pacific Partnership (TPP) have expanded to include seven other nations. The USTR wants the TPP to be “an ambitious, next-generation, Asia-Pacific trade agreement that reflects U.S. economic priorities and values.” According to the USTR's webpage dedicated to the agreement, the administration is “working in close partnership with Congress and with a wide range of stakeholders, in seeking to conclude a strong agreement that addresses the issues that U.S. businesses and workers are facing in the 21st century.”

Development of Farmer Support System on Dairy and Meat Industry of Goat Utilizing ICT

Recently, due to the rapid growth of population and food demand in the Asian region, animal feeding industry is more prosperous, so that animal food production is increasing remarkably in the region. That is, the livestock movement is getting more activated and expanding rapidly, accompanied by the enlarged globalization of economy and distribution in the Asian region. This movement of the livestock industry in the region will be expectedly accelerated by Trans-Pacific Strategic Economic Partnership Agreement (TPP). On the other hand, however, this rapidly accelerated activation and enlargement of livestock movement and transportation, contains an internal risk that the infectious diseases such as foot-and-mouth disease may break out and prevail widely in the region. In order to reduce such a risk of spreading of livestock epidemics, it is necessary to establish a global livestock information system with up-to-date technologies to achieve the food safety of developed and relieved livestock industry in the region. However, due to the budget problem for many animal farmers and the present high-priced information and communication devices, utilization movement of the modern gadget for the small-to-medium scale animal feeding management is substantially stagnant in this region. In this paper, we propose a brand new designed system with the method of ICT applications, devices and techniques to seek for the solution to this problem, concerned with the small-to-medium scale livestock feeders. Furthermore, we examine the relationships between Machine to Machine (M2M) system, database system, and Web system; those are fundamental keystones of this newly proposed system

Japan's Participation in TPP Negotiation: Prospect and Policy Implications for Korea

Since March 2010, the Trans-Pacific Strategic Economic Partnership Agreement (TPP) negotiations have been taking place, where members have expanded into the 11 Asia-Pacific countries from the original Pacific 4 (P4: Singapore, New Zealand, Chile, and Brunei). The P4 has rooted in the P5, where the United States initiated the liberalization of trade and investment among only P5 countries (the United States, Australia, Singapore, New Zealand, and Chile) to overcome the limits of APEC’s open regionalism in the late 1990s. However, the United States and Australia could not join the negotiations because of their respective domestic political problems. The current TPP negotiation is said to have been formally launched in March 2010 when the United States joined the P4 with Australia, Peru, and Vietnam. Meanwhile, Malaysia was approved to participate in the TPP negotiations since October 2010; Canada and Mexico joined in December 2012. The current 11 TPP negotiating countries aim to reach the framework agreement until the APEC summit that will be held in October 2013 in Bali, Indonesia, and the final agreement until the end of 2013. The TPP, as a part of the Free Trade Area of the Asia-Pacific (FTAAP), has been known as an open and multilateral FTA that aims to be a comprehensive and a highly liberalized agree-ment among the 21 APEC countries.

Can hyperlinks and digital rights management secure affordable access to information?

Digital Rights Management Systems (DRMs) related control mechanism, which are analogous to and augment the exclusive rights, have been the subject of debate since the early 1980s. DRMs, which function like an electronic security guard that ‘never leaves its post, never takes a break and never sleeps,11Cameron, Alex, Digital Rights Management: Where Copyright and Privacy Collide (2004) 2 Canadian Privacy Law Review 14, p. 17. can invade the privacy of individuals, prevent competition and/or control access to a work that is not or is no longer copyright protected. Hyperlinks are citations of an electronic address, but when clicked they navigate the user to the source of further information, including codes circumventing DRMs. This article accepts that the excesses of DRMs can outreach copyright and/or contract law, but argues that DRMs provide an opportunity for innovative business models, which can both protect digital works and promote free use of hyperlinks. Part 1 outlines the background and legislative provisions related to DRMs. It contrasts the WIPO Copyright Treaty (WCT) 1996,22The WCT, (and the WIPO Performances and Phonograms Treaty – WPPT, containing similar provisions), are available at http://www.wipo.int/treaties/en/ [22/04/2012]. Articles 11 and 12, with corresponding provisions found in the implementing legislation of the US Digital Millennium Copyright Act (DMCA) 1998,33Digital Millennium Copyright Act, 1998 at http://copyright.gov/legislation/hr2281.pdf [18/04/2012]. and the EU Copyright Directive (EUCD) 2001.44[Copyright] Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society, Official Journal L 167, 22/06/2001 P. 0010–0019. It also examines the intellectual property aspects of the Trans-Pacific Partnership (TPP) and Europe's Anti-counterfeiting Trade Agreement (ACTA).55The TPP, also known as the Trans-Pacific Strategic Economic Partnership Agreement, which came into effect on 28 May 2006 and was initially between Singapore, New Zealand, Chile and Brunei is currently negotiated by other countries in the region including Australia, Canada, Japan and United States; negotiations are conducted in secret and the text is not publicly available.ACTA is between the EU and Australia, Canada, Japan, Korea, Mexico, Morocco, New Zealand, Singapore, Switzerland and the US and is available at http://register.consilium.europa.eu/pdf/en/11/st12/st12196.en11.pdf [26/6/2012]. Part 2 debates opposing academic opinion and comments on case law relating to DRMs, including the use of hyperlinks as a way of trafficking circumvention technology and/or facilitating unauthorised access to a copyright work. It assesses the extent to which DRMs might inhibits the development of new products, prevents competition, or invades the privacy of individuals, and points to the opportunities a consumer group-rightholder negotiated model end user licence can offer. Part 3 concludes that DRMs bolsters the clutches of the rightholder, but reduce unauthorised access to information thus minimising revenue loss, which can make hyperlinked ‘consumer’ access to information ‘affordable,’ or even free.

The Trans-Pacific Strategic Economic Partnership and its Implications for China's Role in East Asia Regional Integration

International relations have undergone major transformations since the end of the Cold War. With the collapse of the Soviet Union and retreat of communism, the rise of liberalism pushed the world towards temporary peace while facilitating the spread of global capitalism. The col-lapse of the iron curtain and developments in technology ushered in the age of globalization, in which states become highly interdependent, and ideological confrontation and military competi-tion have yielded their place to the market and economic cooperation. However, the stagnation of negotiations towards liberalization since the WTO Doha round provided a wakeup call for many states. States no longer simply embrace the ideal of multilateral trade liberalization and begin to adopt a more pragmatic approach towards global trade. Under the conception of “gaining the en-try ticket first before upgrading the seat,” states have turned their attention to the formation of regional trading networks, hoping to increase bilateralism before pushing for multilateral and trans-regional linkages. The development of regionalization in East Asia has lagged far behind the European Un-ion (EU) and the North American Free Trade Area (NAFTA). Regionalization in East Asia only began to take off after the Asian financial crisis, with the political and historical contradictions in the region affecting the delay in regional cooperation. Even though China, Japan and Korea have subsequently proposed schemes for regional cooperation since the early 1990s, territorial dis-putes and historical conflicts have hindered the realization of regional projects. Currently, re-gionalization in East Asia is centered on ASEAN. Over the years, ASEAN has expanded from the original ten countries in Southeast Asia to overlapping regional architectures that have differ-ent strategic implications such as ASEAN + 3 (China, Japan, Korea), ASEAN + 6 (China, Japan, Korea, India, Australia, New Zealand) and ASEAN + 8 (U.S., Russia, China, Japan, Korea, In-dia, Australia, New Zealand). Realization of the China-ASEAN Free Trade Area (CAFTA) in 2010 heralded a new era in the development of regional integration in East Asia. The effect of CAFTA was to push Japan and Korea to hasten their footsteps in negotiating for free trade with ASEAN while symbolizing

Trans-Pacific Strategic Partnership: the Balance of Power and Role in the Formation of Regional Free Trade Area in Asia- Pacific

The article describes the main provisions of existing agreement on the transpacific strategic economic partnership, the need for expansion and its importance to the future Asia-Pacific free trade area (FTAAP). It analyzes of the positions of the leading countries in the region on a Pacific free trade zone - the U.S., Japan and ASEAN.

Pacific trade accord raises difficult issues

A new free-trade agreement is under negotiation in the Asia-Pacific. If the talks are successful, the Trans-Pacific Strategic Economic Partnership Agreement (TPP) will bring closer together at least 11 economies in East Asia and the Americas. But it faces many hurdles, and raises broader geopolitical issues. For example, China, the world's second-largest economy, is not part of the negotiations, and may see the TPP as an effort to contain its growing power.

Trans Pacific Stategic Economic Partnership With Japan, South Korea and China Integrate: General Equilibrium Approach

Problem statement: The Trans-Pacific Strategic Economic Partnership Agreement (TPP) is a high standard and broad based Free Trade Agreement that aims to integrate the economies of the Asia-Pacific region. Recently, the US is pressing Japan to join the group. Japan is considering joining the TPP because of the dual considerations of its own economy and the political situation in East Asia. While, South Korea has yet to agree to join the TPP over concerns that their agriculture will be seriously affected. In addition, Japan and the US are employing both military and economic strategies to isolate China. However, China has contacted those already participating in TPP negotiations and shares some common views with Japan and South Korea on agricultural issues. Therefore, in this study, we attempt to assess the possibility of reaching full trade liberalization or trade creation through the TPP with the addition of new member countries including Japan, Korea and China. Approach: A Computable General Equilibrium (CGE) or Global Trade Analysis Project (GTAP) model is used to evaluate the economic effects of a TPP agreement among TPP countries with trade creation. In this study, seven cases were created to distinguish the welfare and trade effects of policy changes. Results: We found that the new member countries among TPP countries with East Asia countries including Japan, South Korea and China would benefit from the FTA among member countries. They gain much more from the real GDP and welfare than the TPP agreement, particularly Vietnam and Korea. This is particularly a fact for trade in the meat product sectors between TPP with Japan, Korea and China, which most of them gain benefit. Conclusion: Therefore, the TPP would benefit both economies and welfare with the eliminate tariff rate.

A Study on Trans-Pacific Strategic Economic Partnership Agreement

A Study on Trans-Pacific Strategic Economic Partnership Agreement

East Asia’s Engagement with Cosmopolitan Ideals Under its Trade Treaty Dispute Provisions

An East Asian view about how trade dispute settlement systems should be designed is slowly emerging. Democratically-inspired trade law scholarship and cultural explanations of the international law behaviour of the Southeast and Northeast Asian trading nations have failed to capture or prescribe the actual treaty behaviour of these nations. Instead, such behaviour has resulted in the emergence of two different treaty models for the peaceful settlement of trade disputes. The first, which seems firmly established, may be found in ASEAN’s 2004 dispute settlement protocol and the regimes established under the China-ASEAN, Korea-ASEAN, Japan-ASEAN, and ASEAN-Australia-New Zealand FTAs. A second model, based on the Trans-Pacific Strategic Economic Partnership Agreement, could in time become an alternative model for an Asia-Pacific-wide FTA (i.e., including the East Asian nations within it). It adopts a more open approach; one which better accommodates greater transparency in dispute proceedings. At least for now, the two models coexist, obviating the need for East Asia’s legal policy-makers to choose a clear, dominant design for treaty-based trade dispute settlement in the region. But it also means that East Asia’s trading partners can influence East Asian nations, at least in those trade agreements that—like the Trans-Pacific Partnership Agreement—involve negotiations with trans-continental partners.

The Trans-Pacific Strategic Economic Partnership Agreement: A Critical Analysis

When the Trans-Pacific Strategic Economic Partnership Agreement (TPP Agreement or P4 Agreement) was signed in 2005, it was hailed as a ‘high-standard’ agreement that could serve as a model for Free Trade Agreements (FTAs) within the Asia-Pacific region. This claim seems to have received support from recent events, such as the launch of the accession negotiation by the US and the expression of interests from a host of other countries. This article provides a critical analysis on whether the TPP Agreement is a ‘high-standard’ agreement as its members have claimed. After comparing it with other FTAs, this article notes that the P4 Agreement does not distinguish itself among FTAs and has failed to provide higher market access concessions or stricter disciplines on protectionist policies. This is followed by a discussion on the possible factors that might explain the mismatch between the rhetoric and reality of the P4 Agreement. This article concludes by considering how the P4 Agreement could be re-engineered to fulfil its original expectations.

Environmental aspects in free trade agreements in the Asia-Pacific region

The trade and environment interface has become a topic of growing importance. Until the early 1990s, the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organisation (WTO), were the major forums to address the relationship between trade and the environment. Significant progress in this area has not yet been made. Since the 1990s, environmental issues have been addressed by the North American Free Trade Agreement (NAFTA) and in recent times by trans-regional and bilateral free trade agreements (FTAs) such as the Trans-Pacific Strategic Economic Partnership Agreement (SEP), the U.S.–Singapore FTA (USSFTA), the Canada–Chile FTA or the New Zealand–Thailand Closer Economic Partnership Agreement (CEP). Not only questions on the effectiveness of FTAs in global and regional environmental governance arise but also on the various actors involved in these negotiations. The question here is whether the integration of environmental issues in FTAs is a top-down approach, leaving the negotiations and implementation of environment cooperation frameworks in the hands of governments, or whether environmental arrangements are the result of a multi-stakeholder dialogue, consequently committing governments, the private sector and civil society to the objective of making trade and environmental policies mutually supportive. This article seeks to address these questions by analysing environmental issues and stakeholder participation in the Asia-Pacific Economic Cooperation (APEC), the Trans-Pacific SEP and the New Zealand–Thailand CEP.