Philippines has begun preliminary negotiations to join the Trans Pacific Partnership (TPP) countries. But there is a possibility that joining the TPP might result in the Philippines’ getting flooded with duty-free American products.
The major textile and apparel countries – China, Bangladesh, Cambodia – are not going to join the TPP. This presents a golden opportunity for the Philippines to revive its textile and apparel industries.
Since China is organizing its own common market, the manufacturing hub of the TPP will be Vietnam and, hopefully, the Philippines. The Trans Pacific Partnership is envisioned to be similar to the European common market. The goal is to eliminate trade barriers, especially tariffs and quotas, among countries in the Asia Pacific region.
Joining the TPP will mean more jobs, faster economic growth and reduction in poverty. The biggest beneficiary of the TPP would be Vietnam. This country has the lowest wages compared to the other TPP members.
The United States is interested in joining because the TPP will open up new markets for its service industries. This will present potential competition for local companies in the financial and professional services.
The TPP will create the most powerful and wealthiest economic region in the world. The 12 countries now in the TPP account for 40 per cent of the world economy.
