Updated: US Withdraws from Trans-Pacific Partnership Trade Agreement | Practical Law

Updated: US Withdraws from Trans-Pacific Partnership Trade Agreement | Practical Law

President Obama has announced that the US has finished negotiating the Trans-Pacific Partnership (TPP) trade deal with 11 other nations and that the White House will now work with Congress to secure its passage into law.

Updated: US Withdraws from Trans-Pacific Partnership Trade Agreement

Practical Law Legal Update w-000-6338 (Approx. 4 pages)

Updated: US Withdraws from Trans-Pacific Partnership Trade Agreement

by Practical Law Commercial Transactions
Law stated as of 25 Jan 2017 • USA (National/Federal)
President Obama has announced that the US has finished negotiating the Trans-Pacific Partnership (TPP) trade deal with 11 other nations and that the White House will now work with Congress to secure its passage into law.
This resource has been updated to reflect President Trump's withdrawal of the US from the TPP.
President Trump, by executive order, has withdrawn the United States from TPP negotiations. For more information, see Update.
On October 5, 2015, President Obama announced that the US and 11 other nations have agreed on the terms of the Trans-Pacific Partnership (TPP) trade agreement. This trade agreement, one of the largest in the world, would encompass 40 percent of the world's economy.
Among other things, the TPP trade agreement:
  • Eliminates over 18,000 tariffs that other countries impose on "Made in America" products, including manufactured, agriculture, automotive and communication technology products.
  • Requires the TPP countries to meet the core, enforceable labor standards stated in the International Labor Organization's Declaration on Fundamental Principles and Rights at Work, which include:
    • the freedom to form unions and bargain collectively;
    • prohibitions against child labor and forced labor;
    • requirements for acceptable work conditions such as minimum wage and safe workplace conditions; and
    • protections against employment discrimination.
  • Creates new, more stringent environmental standards for TPP countries by requiring them to:
    • combat wildlife trafficking and illegal logging and fishing;
    • promote sustainable fisheries management practices; and
    • promote long-term conservation of certain animals and marine species.
  • Includes rules to promote internet-based commerce.
  • Requires TPP countries to commit to fighting corruption by:
    • ratifying or acceding to the UN Convention Against Corruption;
    • committing to adopt or maintain laws that criminalize bribing public officials;
    • adopting measures to decrease conflicts of interest; and
    • committing to effectively enforce anti-corruption laws and regulations.
The TPP includes:
  • The US.
  • Canada.
  • Australia.
  • New Zealand.
  • Japan.
  • Malaysia.
  • Mexico.
  • Peru.
  • Vietnam.
  • Chile.
  • Brunei.
  • Singapore.
As a group, the TPP countries are the US' largest goods and services export market.
For more information on the TPP trade agreement, see FACT SHEET: How the Trans-Pacific Partnership (TPP) Boosts Made in America Exports, Supports Higher-Paying American Jobs, and Protects American Workers.
Congress must review and approve this agreement before it becomes law in the US.

Update

On January 23, 2017, President Trump, by executive order, withdrew the US from TPP negotiations. Per the executive order, the US will no longer pursue or negotiate the TPP and will withdraw from being an active signatory.