Why the United States Must Re-Enter the Trans-Pacific Partnership Agreement

The Trans-Pacific Partnership agreement commonly referred to as TPP is a trade and investment agreement. The TPP agreement was entered by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Vietnam, Singapore and the United States (Schott, 2016). Like any other trade partnership agreement, the TPP is aimed at ensuring that the countries that are involved in the partnership all benefits from the partnership hence ensuring that there is development within the region (Schott, 2016). The signing of the TPP agreement by the United States was faced with lots of opposition from the Republicans. As a result, the United States withdrew from the Trans-Pacific Trade Partnership when Trump who is a Republican took the office of the president. The United State claimed that the primary reason for it withdrawal from the TPP agreement was because it favored some great entrepreneurs and other countries at the expense and well-being of the average Americans (Senator Brown, n.d). However, there is a need for the United States to re-enter the TPP agreement because the country will experience more benefits as a member of the trade partnership.

This research used the conceptual modeling and literature review as the primary research method. These methods were efficient in conducting this research because the material used for the research will be readily available. Consequently, the research topic was an international issue hence using the literature review and conceptual modeling techniques for the research ensured that the information that was used was up to date and a reflection of the happening in the international environment. Therefore, the finds of the research are reliable and can be used to argue sufficiently about the research topic because the materials used in the study were released and published on a daily basis in several newspapers and government websites.

Research Findings

A literature review of the research topic showed that the United States was among the key countries that create the TPP agreement. The research was able to do a comparative study that identified the importance of the TPP partnership on the United States economy and determined that the country should rejoin the trade agreement. Although the are several cons that seem to have an adverse impact on the economy of the United States, the TPP agreement offers several benefits that can be useful in improving the economy of the United States (Schott, 2016).

Pros of TPP Agreement

For any trade agreement to be signed by several countries, there is supposed to be some benefits that the countries have determined that they will be able to get from the agreement. The TPP agreement is no different as it offers it members with several benefits which they can use to ensure that they have developed in their countries and their economy is stable. First, the United State will take advantage of the TPP agreement by being able to strengthen its ties with the other countries in the Pacific region (Li, 2016). Having strong bilateral ties between the United States and the several countries in the Pacific region benefits the country as it will have a ready market for its products (Li, 2016).

Additionally, the ties that the country will create and strengthen by being in the trade agreement will assure that there is a constant flow of goods and services from the country to its allies. Furthermore, by reinforcing its ties with other nations in the Pacific region, the United States will be able to create more paying jobs for its population. The creation of employment will be in terms of the several business and trade related activities that the country will be engaged in. However, the United State President Trump argues that the agreement was causing the Americans their jobs because many organizations in the country would opt to outsource it services to other lower-cost countries just like other trade deals did. In the previous years, United State has been engaged in some trade agreements that seemed that cut down on the jobs that the country was offering to its citizens. This resulted from the outsourcing of services by organizations in the country denying the population of United States job. However, the TPP agreement will provide the country with cheaper labor in addition to a ready market for its produce. As a result of the ready market, the producing companies in the country will have to increase its production hence the country would be able to provide enough employment opportunities for its population.

Secondly, Schott (2016) argues that the TPP agreement is a big and important deal for each and every country which has been enlisted in the agreement as a member. According to Schott (2016), the TPP agreement is big and important for all its members because when compared to other larger trade organizations, the TPP agreement tends to offer more benefits to the members in the partnership. For instance, countries that are involved in the TPP agreement constitute to about 24 percent of the entire world trading processes. When put into perspective, the percentage that the countries in TPP agreement produce for the entire world means that these countries produce more to the trading world. As a result, if these countries are able to concentrate solely on the TPP agreement the countries in the partnership will be able to engage in beneficial trading activities. This will enable the countries in TPP agreement to improve their economies through their trade partnership.

Furthermore, Li (2012) in her research argues that the economy of America will benefits and gain exceedingly from the country interaction with the East Asia region. The East Asia region has several countries that are experiencing fast growing economies as a result engaging in trade with these countries will be beneficial for the American economy because they will be able to engage in productive trade activities that will enhance the economies of all the countries. Li research was conducted through analyzing the IMF records. After analysis of the IMF records Li (2012) concludes that big minded American investors can use the opportunity that is provided by the TPP agreement in order for them to gain high returns from the fast-rising East Asia region which will be beneficial for the general country economy hence the country will be benefiting from the TPP agreement. In the research, Li concludes that Chile, Vietnam, and Peru can be ideal trade partners for United State because they have rapidly growing economies which make them have unique business niche that can be beneficial for the United States.

Thirdly, the United States will benefit from the TPP agreement by being able to engage in free trade with their partners. The TPP trade agreement encourages its member states to practice free trade among them. American investors will be able to benefit from this agreement because they will be able to operate in a regulated environment with regulated trade rules. These trade rules ensure that all the investors who will take advantage of the opportunity are bale to benefit from the low cost of transacting business within the member states of TPP. Consequently, the TPP agreement has been able to create aggressive policies and strict labor laws that will ensure that there is no exploitation of labor. As a result investors from the United States will have to compete with other investors in a fair environment. This will benefits small time investor as they will be able to counter the influence that the big investors have in the trade market hence enhancing trade that will help the investors to develop which translates to the development of their countries. Implementation of the proposal to eliminate trade barriers in the TPP agreement provides an opportunity for the trading potential for medium sized and small entrepreneurs hence small American businesses can flourish through TPP agreement (USTR, 2015).

Another benefit that the United States will get from The TPP agreement is security and stability. According to USTR (2015), the foundation of Americas security and stability relies on its economy. By establishing itself as the world superpower, the United States was able to secure its country and create stability. However, in the recent past, China has been posing a constant threat to the superpower status of United States. The rise of China is usually associated with the various trade agreement it has entered with the majority of the African nation and other developing countries. As a reaction to this, the United States should increase trade between it and countries in the TPP agreement. This will work to strengthen the partnership and alliance that the country will have in East and Southeast Asia hence it will be able to counterbalance China influence (Wignaraja, Ramizo & Burmeister, 2012). The TPP agreement, therefore, offers United State the best chance of managing the rise and influence of China in the world economics.

In the TPP agreement, the major aim of the agreement is to boost economic growth through improvement of the industrial sector. The main industrial sector that the agreement seeks to improve is the auto, agricultural, machinery, and plastic sector. Among the member states of the TPP agreement, United States stands to benefit more from this because there are no competitors in most of the industrial sectors that the agreement highlights. The United States will, therefore, be to exporting most of its auto, agricultural and machinery products to the member states. The country will experience and increase in these exports as a result of reduced tariffs for exportation that is placed by the TPP agreement. For instance, according to USTR 2015 fact sheet report at least 18000 revenues that have been imposed on domestic exports from American have been scrapped away by the TPP agreement (USTR, 2015).

Additionally, apart from the direct economic benefits that the United States will be able to achieve the TPP agreement, the country will also befit from the laws that the agreement proposes. USTR studied the labor laws stipulated by the agreement and termed it as a potential regulator and enforcer of labor laws. By re-entering the TPP agreement, the American worker will be permitted to form labor unions, fight discrimination at work, demand for better wages and also demand for a safe working environment. The TPP agreement ensures that all its member countries abide by the labor laws so that they can be able to conduct free trade within the set rules. The benefits of having a satisfied workforce will, in turn, benefit the country hence there is a need for United States to re-enter into the TPP agreement (Manyin et al., 2012). The TPP agreement also protects the children rights by prohibiting child labor this ensures that no country exploits the other for cheap labor. As a result, the employment opportunities created by the agreement will be beneficial for each country.

The promise of having a vibrant economic market within East Asia is another benefit that United State will get from being a member of the TPP trade agreement. Most countries from the East Asia region are member states of the TPP agreement. This will create an ideal avenue through which United State can be able to create a viable and vibrant economic market in the East Asia region (USCC, n.d). According to the United States, International Trade Commission formulation of such an economic market will have a tremendous assertive impact on the economy of the region and that of the United States. This market will have also been created with fewer risks as trade regulations formulated by the TPP agreement harmonizes the trading process will guaranteeing certainty hence causing the cost of inv...