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The Economic Effects of the Trans-Pacific Partnership

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The Economic Effects of the Trans-Pacific Partnership

New Estimates

Peterson Institute for International Economics,

5 min read
5 take-aways
Audio & text

What's inside?

The Trans-Pacific Partnership could have a huge economic impact on the United States and the 11 other participating nations.

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The Trans-Pacific Partnership (TPP) promises to become a vital tool in facilitating and promoting global trade. Finalized in late 2015, the free trade agreement among the United States and 11 Pacific Rim nations sets new rules in international commerce that would lower trade barriers among participants. Yet its detractors bemoan potential job losses and greater corporate advantages. This updated cost-benefit analysis from economists Peter A. Petri and Michael G. Plummer quantifies the TPP’s long-range impacts on national incomes and employment, particularly for the United States. While always neutral, getAbstract recommends the authors’ research-based findings to economists, policy makers and others involved in crafting trade strategies.

Summary

The diverse group of countries that seek to ratify the Trans-Pacific Partnership (TPP) – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam – account for 36% of global GDP and 23% of world exports. The TPP could increase worldwide annual income by $492 billion by 2030. As the first “megaregional” trade pact since the 1990s, it would have sweeping effects on global trade by expanding and deepening World Trade Organization agreements on services, investment and food criteria. The TPP reinforces...

About the Authors

Peter A. Petri is an international finance professor at Brandeis. Michael G. Plummer is director of SAIS Europe and a professor of international economics at Johns Hopkins University.

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