Trans-Pacific Trade: Eleven US allies sign sweeping new deal

World
Europe

Hours before Trump's declaration on tariffs, 11 Pacific-Rim nations signed a historic trade pact in the Chilean capital and it doesn't include the US. CGTN's Joel Richards reports from Santiago.

While in the north, trade barriers are going up, in South America on Thursday, 11 Pacific Rim countries committed to pulling them down, finally agreeing on a major free trade agreement.

TOSHIMITSU MOTEGI JAPANESE ECONOMY MINISTER "TPP 11 is a historic achievement which creates free and fair rules of the 21st century in the Asia Pacific region."

Members of the reworked Trans-Pacific Partnership, better known as TPP 11, stress this is designed to be an inclusive treaty that will benefit its people, and not only large corporations.

JOEL RICHARDS SANTIAGO "The agreement signed here in Santiago, Chile, brings together countries with a combined population of 500 million, representing around 14% of world trade. But the original Trans-Pacific Partnership, which included the United States, would have brought together 40 percent."

But in January, 2017, on just his third day as president, Donald Trump withdrew from the agreement, raising questions about the future and relevance of TPP.

Some analysts say this agreement, beyond just the economy, must be viewed in its geopolitical context.

LORENA OYARZUN INSTITUTE OF PUBLIC AFFAIRS, UNIVERSITY OF CHILE "TPP is far reaching, when we talk about commerce, investment, intellectual property and services, it has a direct effect not only on the economy, but also on labor, on the environment and on health issues."

Many have criticized this trade agreement. There are fears of too much power in the hands of corporations leading to lost jobs and industry.

The revised deal, which eliminates some requirements from the original TPP, will go into effect two months after a majority of the signatories ratify the agreement. Joel Richards, CGTN, Santiago.