Challenges to the world economic structure from TPP

LEI Da1 ZHU Dan2

(1.School of Economics, Renmin University of China)
(2.School of Economics and Management, China Youth University of Political Studies)

【Abstract】The Trans-Pacific Partnership Agreement, or TPP, attempts to upgrade international trade system, and based itself on the fair trade principle. TPP includes series of rules that help to locate its member economies in the global industrial chain, while at the same time facilitate the establishment of operational organization and disputes settlement mechanism. This paper presents analysis that policy coordination and synchronization among the member countries of TPP will lead to the change of the foundation of international trade from comparative advantage to absolute advantage. As a result, world trade volume will decline. The findings show that change contradicts not only the mainstream economic principles, but also the world economic order centered around the US. The contradictions conflict US re-balancing efforts as well as the multi-coordination mechanism led by the US after WWII. The authors conclude that TPP’s effects on the global industrial chain will probably depart from its goals.

【Keywords】 TPP; fair trade ; free trade ; international coordination ; US rebalancing strategy;

【DOI】

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(Translated by ZHANG Ning)

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This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 01, Pages 58-69+5-6

January 2016

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Article Outline

Abstract

  • 1 US post-war policy adjustments against the imbalance in world economic development
  • 2 TPP: US new attempt of strategic adjustment
  • 3 Multiple challenges from TPP to global economic landscape
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