The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications

14 Pages Posted: 16 Jul 2012

See all articles by Peter A. Petri

Peter A. Petri

Brandeis University - Brandeis International Business School; Brandeis University - Department of Economics

Michael G. Plummer

Johns Hopkins University

Date Written: June 15, 2012

Abstract

The Trans-Pacific Partnership (TPP) agreement, now in negotiation among nine Asia-Pacific countries, could yield annual global income gains of $295 billion (including $78 billion for the United States) and offers a pathway to free trade in the Asia-Pacific with potential gains of $1.9 trillion. The TPP’s expected template promises to be unusually productive because it offers opportunities for the leading sectors of emerging-market and advanced economies. An ambitious TPP template would generate greater benefits from integration than less demanding alternatives, but it will be harder to sell to China and other key regional partners as the TPP evolves toward wider agreements. The importance of Asia-Pacific integration argues for an early conclusion of the TPP negotiations, without jeopardizing the prospects for regionwide or even global agreements based on it in the future.

Keywords: Trans-Pacific Partnership, FTAs

JEL Classification: F12, F13, F14, F15, F17

Suggested Citation

Petri, Peter A. and Plummer, Michael G., The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications (June 15, 2012). Peterson Institute for International Economics Policy Brief, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2108399

Peter A. Petri (Contact Author)

Brandeis University - Brandeis International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Brandeis University - Department of Economics

Waltham, MA 02454-9110
United States

HOME PAGE: http://ppetri.com/

Michael G. Plummer

Johns Hopkins University ( email )

Via Belmeloro 11
40126 Bologna
Italy

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