Trans-Pacific Partnership Agreement (TPP) - World Arbitration Reporter, Second Edition
Originally from World Arbitration Reporter (WAR) - 2nd Edition
The Trans-Pacific Partnership Agreement (TPP) has been characterised as an ambitious effort to increase investment. As the “biggest global trade deal in twenty years,” it attempts to balance a number of competing interests and objectives. These include regulatory coherence, safeguarding investor protection and unifying dispute settlement mechanisms. In the past, investment treaties have been either regional in scope, for example with the North American Free Trade Agreement (NAFTA), or focused on specific sectors, such as the Energy Charter Treaty (ECT). The TPP however covers a wide range of sectors and the economic reach of its twelve Pacific Rim members is estimated to cover around half the global GDP and 40% of global trade. Demonstrating the collective scope of its unifying force, the TPP aims to eliminate over 98 per cent of tariffs in its region upon entry into force.
Since its signature by all member parties, the TPP has come under increased scrutiny as to its viability after the United States (US) withdrew its participation in early 2017. Without ratification by the US, the TPP is unlikely to achieve the required threshold of 85 per cent of the combined GDP of the original signatories for it to come into force. Notwithstanding this, the fact that the TPP text was finalised demonstrates the collective will of the 12 states in advancing a deeper level of economic integration. On 11 November 2017, at the APEC Economic Leaders Week, the representatives of the remaining 11 TPP parties agreed to the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).