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prelims Test Series 2019
Q. USA withdrew Trans Pacific Partnership: Comment on America's decision to withdraw from Trans Pacific Partnership mega free trade agreement.
Feb 02, 2017 Related to : GS Paper- 3

Ans :


Recently new government of United States of America withdrew from mega free trade agreement called Trans Pacific Partnership. New protectionism policy of USA has brought the World Trade Organization and its multilateral framework under severe threat.

What is Trans Pacific Partnership?

The Trans-Pacific Partnership is the largest regional trade accord in history the United States and 11 other Pacific Rim nations. The pact aimed to deepen economic ties between these twelve countries that border the Pacific Ocean signed up in February 2016, representing roughly 40% of the world's economic output. 


Such protectionist action of US government has multilateral impact on the World Trade Organization and its multilateral framework. As negations on crucial issues at the WTO have been slow and tedious, and can hardly keep up with the demand of ongoing international trade and investment.

What can be done-?

  • The deals like TPP are no substitute for a strong, rule-based multilateral framework, which the WTO represents. The WTO has been languishing and needs the active support from developing countries.
  • Trade deals between group of countries will succeed when the domestic economy is strong and when a rule-based multilateral framework remains a default option.
  • Hence there is an urgent need to strengthen the World Trade Organization and their multilateral frameworks, for that it need active support from developing countries like India.


With USA’s withdrawal TPP is bound to fail as its participation was the major linchpin for the deal. The failure of TPP exposes the weakness of WTO and its multilateral framework. Hence for success of such deal we need to strengthen multilateral framework of WTO.

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