INSIDE GLOBAL ISSUES
Policy Brief No. 201536
Interpretation of TPP Summary
Su Qingyi
Discussed in closed-door negotiations, the full texts of the Trans-Pacific Partnership (TPP), which involves 12 countries including the US, Japan and Canada, have not been available. So far, the Office of the United States Trade Representative has only published a TPP summary, revealing the TPP includes 30 chapters. Following the publication of the English summary, some media and social organizations in China translated it into Chinese for the information of the public. On October 13, the Department of International Trade & Economic Affairs under MOFCOM also published the official Chinese version of TPP summary. Here is a concise interpretation of the TPP summary based on the official translation.
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Contents that exist in multilateral framework of WTO are related to tariff barrier, non-tariff barrier, Rules of Origin, intellectual property rights, etc. Tariff barrier refers to tariff cuts for imports, including industrial products and agricultural products, which will immediately promote regional trade growth but exert negative influence upon the trade of countries outside the region. The scale and scope of tariff cuts under TPP are not matched in any other previous trade agreements, but we still know nothing about the specific details. Non-tariff barrier refers to measures that facilitate trade, which is also a key part of Bali Package of WTO. Among these contents, Customs Administration and Trade Facilitation is in line with reforms that China is undertaking, while “Sanitary and Phytosanitary Measures” and “Technical Trade Barrier” will promote trade and help write new rules. Rules of Origin, Trade Remedies, and Dispute Settlement are supportive for free trade facilitation, though the specific contents may vary from the current agreements. As for intellectual property rights, WTO has actually set up Trade-Related Aspects of Intellectual Property Rights (TRIPS), but TPP makes harder and faster rules for protection of intellectual property rights. Developing and developed countries have huge differences in the terms regarding intellectual property rights, for stricter regulations are favorable for developed countries. It is still a game among the parties to reach an agreement on these contents. All regional trade treaties that China has signed so far cover the above mentioned contents, only to varied extent.
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