5 defining features make TPP a landmark 21st-century agreement

The TPP eliminates or reduces tariff and non-tariff barriers across substantially all trade in goods and services, according to the final text of the TPP Agreement released here Thursday.

The 21st-century agreement covers the full spectrum of trade, including goods and services trade and investment to create new opportunities and benefits for businesses, workers and consumers.

The second defining feature is a regional approach to commitments.

"The TPP facilitates the development of production and supply chains, and seamless trade, enhancing efficiency and supporting our goal of creating and supporting jobs, raising living standards, enhancing conservation efforts, and facilitating cross-border integration, as well as opening domestic markets," it said.

The TPP also addresses new trade challenges as it promotes innovation, productivity and competitiveness by addressing new issues, including the development of the digital economy and the role of state-owned enterprises in the global economy.

The fourth defining feature is inclusive trade -- the TPP includes new elements that seek to ensure that economies at all levels of development and businesses of all sizes can benefit from trade.

This includes commitments to help small- and medium-sized businesses understand the agreement, take advantage of its opportunities and bring their unique challenges to the attention of the TPP governments.

It also includes specific commitments on development and trade capacity building, to ensure that all parties are able to meet the commitments in the Agreement and take full advantage of its benefits.

Lastly, the TPP is intended as a platform for regional economic integration and designed to include additional economies across the Asia-Pacific region.

The TPP's scope includes 30 chapters covering trade and trade-related issues, beginning with trade in goods and continuing through customs and trade facilitation; sanitary and phytosanitary measures; technical barriers to trade; trade remedies; investment; services and electronic commerce.

Others include government procurement; intellectual property; labour; environment; ‘horizontal’ chapters meant to ensure that the TPP fulfils its potential for development, competitiveness, and inclusiveness; and dispute settlement, exceptions and institutional provisions.

In addition to updating traditional approaches to issues covered by previous free trade agreements (FTAs), the TPP incorporates new and emerging trade issues and cross-cutting issues.

These include issues related to the Internet and the digital economy, the participation of state-owned enterprises in international trade and investment, and the ability of small businesses to take advantage of trade agreements.

The TPP unites a diverse group of countries -- diverse by geography, language and history, size, and levels of development.

"All TPP countries recognise that diversity is a unique asset, but also one which requires close cooperation and capacity building for the lesser-developed TPP countries.

"In some cases, special transitional periods and mechanisms offer some TPP partners additional time, where warranted, to develop capacity to implement new obligations," the agreement stated.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed, in a statement Thursday, said the TPP would be tabled in Parliament early next year for debate.