GS II India, China, USA, Asia and TPP

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Presentation transcript:

GS II India, China, USA, Asia and TPP

Introduction of TPP It was signed by 12 countries in Auckland, New Zealand on Feb 2016. US, Canada, Mexico, Chile, Peru, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, and New Zealand. 40% of world economy. 800million population. Aim: to deepen economic ties slash tariffs (taxes on imports) foster trade to boost growth. designed to create as single market like EU.

USA and TPP It was Obama’s brain child. Obama administration designed it to write rules of trade in Asia by TPP and keeping China out of it. Donald Trump has said that he will pull USA out of TPP from his 1st day in the office. He termed TPP as a potential disaster for USA. Mr. Trump wants fair bilateral trade deals that can bring back industries in USA and create jobs. If USA is out of Asia then it a bit worry for India. India-Japan-USA trilateral, East Asia Summit

Asia Home to some of the world’s leading and fastest growing economies. 45% world population. ½ of world’s container tariff and 1/3rd of its bulk cargo travel across Indian ocean. 40% of world’s offshore oil production comes from the Indian ocean. Defence spending of Asia is larger than Europe now. In forthcoming future countries around this region will have latest technologies in defence. Asia-Pacific is over, its time for Indo-Pacific.

China Xi Jingping has shown willingness to fill the vacuum created by USA. If US is out, China can emerge as juggernaut. China’s regional alliance: OBOR, MSR, AIIB, SCO, RECP. It is violating established norms with impunity. South China Sea and 9 dash lines. China is largest source of global economic growth. It is main trading partner of 120/196 nations. Nations which are sceptical of a China led world order are also willing to join RCEP. e.g. New Zealand

India and TPP TPP’s excessive emphasis on intellectual property and other non-tariff barriers discomfit India. TPP can give more market access of Japan and USA to other rival Asian countries. This can hurt Indian trade with Japan and USA. Regional Comprehensive Economic Partnership (RCEP) is less demanding for India when it is compared to TPP. India has shown that it has arrived. India is playing vital role in UN’s affairs, Paris Climate Summit, claiming NSC and UNSC membership.