TRADE, THE WoT AND GOLF:

Finally, the TPP is important because of what it demonstrates globally in terms of the possibility of making progress on trade and investment liberalization and the capacity of the U.S. to lead such an effort. For one, the diversity of countries involved--lower-middle-income countries such as Vietnam, upper-middle-income countries such as Malaysia and Mexico, and high-income countries such as Japan, Australia, Canada, and Chile--sends an important message about the benefits to all countries of undertaking further trade and investment liberalization, committing to high standards and new regulations and rules on issues such as labor and the environment. 

Take Vietnam, for instance. Its willingness to agree to the TPP represents a serious commitment by its government to economic and even some political reform. For the first time, Vietnam will allow for the independent formation of labor unions as a result of the TPP labor chapter. Vietnam's willingness to liberalize its services sectors and to commit to new digital economy rules on data flows is supporting growth in its IT sector, as companies such as IBM build data centers and invest in research and development facilities. Indeed, the ability for Vietnam to agree to the TPP has led some in China to ask why China can't also commit to similar reforms and join the agreement. 

The TPP benefits all parties. In fact, the largest gains from the TPP will be in those countries laboring under high levels of protection, such as Japan and Vietnam--reflecting the fact that the gains from any trade agreement ultimately flow from the domestic liberalization that follows. But while the overall impact of the TPP on the U.S. economy may seem relatively small given the already open nature of the U.S. economy and the small amount of trade with TPP countries as a share of U.S. GDP, the agreement brings with it some valuable economic benefits for the U.S. from new market access opportunities. Perhaps most importantly, the TPP will underpin important reforms and positive growth trajectories across TPP parties that are also consistent with U.S. values and economic interests going forward. It is in this respect that the TPP is an important economic and strategic win for the U.S.  

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