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TPP – A Geopolitical Trade Deal for US and Asia

This deal is really about implementing the Asian ‘pivot’ since China is not included purposely.  There are 12 countries that represent 40% of world GDP, with the US and Japan being the key ones.

All three NAFTA countries (US, Canada and Mexico) plus selected countries in South America such as Chile and Peru. The deal also includes key US allies in Asia: Japan, Australia, New Zealand, Singapore and Vietnam.  Other Asian counties include Brunei and Malaysia with others lining up to join such as South Korea, Taiwan, Philippines, Indonesia, Cambodia and Colombia.

However, opposition from rival politicians in the US, Canada and Australia for example might challenge the agreement.  Some businesses don’t like the agreement or might not be able to meet the stringent standards that are imposed.   To meet the higher labor and environmental standards some countries will have to improve over time.

In short, this is an economic treaty between the US and Japan with some allied countries to rival China economically in the future.  It is really about geopolitics first.