Valdai Club

Many TPP rules resemble the key tendencies of the world economic development. It would be nice to intensify the negotiations on formation of free trade zones with China, as well as a deal on a bilateral investment agreement.

The US and a whole set of states, including Japan, Mexico, Canada and Australia, agreed to form a trade bloc – the Trans-Pacific Partnership. However, China as the world's second largest economic powerhouse is missing in the bloc for some odd reason.

Barack Obama cleared things up in this respect, stating that "we can’t let countries like China write the rules of the global economy."

You can say that again, what is permissible for Jove is not permissible for an ox…

Signing the deal will enable the US to stand up against China in the Asia-Pacific region. The document stipulates a wide range of issues related to protection of intellectual property, to finances, investments, customs cooperation, agriculture and an array of other fields.

I believe that the US wants to line its pockets at the expense of developing states turning them into consumers of American products. Time will show whether it is so or not. In any case, I doubt that Americans have decided to follow the suit of charity.

At least, Obama admitted it personally: "We should write those rules, opening new markets to American products while setting high standards for protecting workers and preserving our environment."

Apparently, the TPP agreement is another attempt of transnational corporations to reach a multilateral agreement that would endow large private capital with special rights. In particular, the right to contest and annul the laws and state decisions "undermining the international competitiveness" of transnational corporations.

However, "the devil is not as terrible as he is painted." There is no need in exaggerating the negative impact of the TPP on China.

First of all, no matter how you put it, the TPP agreement needs ratifying. The parliaments of its 12 signatories have many critics of the Trans-Pacific Partnership. Many of them reside in the US Congress. Ratification of the TPP is slated for early 2016. Therefore, the biggest disputes around this American project are yet to come.
Secondly, Americans have lured countries with varied economic levels into the agreement. The developments in the European Union may recur in America. The economic misbalance in the EU has resulted in weaker economies becoming a drag on the European Union.

Thirdly, China is the largest trade partner of most TPP members. It is hard to slight it. No wonder Japanese Prime Minister Shinzo Abe said that China will be allowed to join the new economic regional bloc in the future.

However, "put your trust in God, and keep your powder dry", the Chinese are capable of taking preliminary measures.

Before March 15, 2010, when the first round of TPP talks began, China had taken a string of "preventive measures". They include harmonization of the domestic market, activation of negotiations on free trade in the region, including establishment of free trade zones, such as China-ASEAN, China-South Korea, China-Australia, China-New Zealand. And finally, negotiations on establishment of the Regional Comprehensive Economic Partnership (RCEP), which will consist of 10 ASEAN members, as well as China, India, Japan, South Korea, Australia and New Zealand.

Over two years ago, China proposed formation of the Silk Road Economic Belt and the 21st-century Maritime Silk Road initiative, reached an agreement with Russia to tie the project to the Eurasian Economic Union. Its realization would give China and Russia a good chance for extensive economic cooperation.

The US or other states should not be rebuked for any potential pressure from the TPP. One must not clam up.

Besides, many TPP rules resemble the key tendencies of the world economic development. It would be nice to intensify the negotiations on formation of free trade zones with China, as well as a deal on a bilateral investment agreement.

It is important to speed the domestic reformation process, pluck up courage – as in the 1990s, after joining the WTO – to overcome the obstacles put up by "blocs of interests", and take the path of a healthy market economy.