On October 5, 2015 (August 23, 2015 in the lunar calendar), the basic agreement of the Trans-Pacific Partnership Agreement (TPP) was reached. Distribution map of the 12 member countries of the TPP On October 5, 2015, the 12 negotiating countries of the Trans-Pacific Partnership Agreement (TPP) reached a basic agreement at the ministerial meeting held in Atlanta, USA. What is the TPP agreement? Which countries are included? Why is it so important? What does it mean to reach an agreement? What does this agreement mean for China? 1. What is the TPP agreement? TPP (Trans-Pacific Partnership Agreement) is the Trans-Pacific Partnership Agreement, also known as "Economic NATO". Formerly known as the Trans-Pacific Strategic Economic Partnership Agreement (P4), it is a set of multilateral relations initiated by New Zealand, Singapore, Chile and Brunei among the members of the Asia-Pacific Economic Cooperation Conference. The free trade agreement, formerly known as the Asia-Pacific Free Trade Area, aims to promote trade liberalization in the Asia-Pacific region. In October 2002, during the 10th APEC Summit held in Los Cabos, Mexico, Singapore, New Zealand and Chile reached an agreement on the conclusion of FTA. Formal negotiations began in Singapore in September 2003, and Brunei participated in the last round of negotiations in April 2005. The agreement was signed on July 28, 2005, and it came into effect in May 2006. On November 10, 2011, Japan officially decided to join the TPP negotiations, while Chinese mainland did not apply to participate in the TPP negotiations. At present, there are 12 participating countries in TPP, accounting for 40% of the global economy, surpassing the European Union. The establishment of the Trans-Pacific Partnership Agreement aims to break through the traditional free trade agreement (FTA) model and reach a comprehensive free trade agreement including all goods and services. The Trans-Pacific Partnership Agreement will have an important impact on the process of Asia-Pacific economic integration. It may integrate the two major economic regional cooperation organizations in Asia-Pacific, that is, the overlapping major member countries of Asia-Pacific Economic Cooperation and Association of Southeast Asian Nations, and develop into an Asia-Pacific Free Trade Area covering most members of Asia-Pacific Economic Cooperation (APEC), and become a small world trade organization (WTO) in the Asia-Pacific region. 2. Which countries are included in the TPP agreement and what is its scale? The TPP agreement is led by the United States and started as early as five years ago. TPP negotiations consist of two parts: one is the areas decided by all 12 participating countries, such as intellectual property protection rules; Second, bilateral consultation areas such as tariff reduction and exemption of certain items. Twelve negotiating countries agreed to conduct free trade and unify norms in a wide range of fields such as investment and intellectual property rights. Brunei, Chile, New Zealand and Singapore were the initial participating countries. Since then, the United States, Canada, Mexico, Japan, Vietnam, Australia, Peru and Malaysia have joined in. There are 12 participating countries in TPP, accounting for 40% of the global economy, surpassing the European Union. 3. TPP is not only related to trade, but also related to geopolitics. TPP is often regarded as an agreement between the United States and Japan to jointly contain China. After the TPP agreement was reached, Obama commented that the TPP agreement would give American workers equal rights and opportunities they deserve, and the United States would not allow China and other countries to write the rules of the global economy. The TPP agreement will formulate the rules of the global economy in many fields in the 21st century. Last week, Obama said that TPP is such an agreement, which can enable countries to promote economic growth through higher trade standards. Through TPP, the market can be liberalized while protecting workers' rights and the environment, making development more sustainable. 4. The conclusion of the TPP agreement also means the conclusion of a free trade agreement between the United States and Japan. Both the United States and Japan rank among the top three in the world in terms of economies, and the United States and Japan have not reached a bilateral trade agreement before. Japan joined the TPP dialogue negotiations in 2013, which promoted separate dialogues between the United States and Japan in automobiles, beef, rice, pork and other fields. Trade barriers between the United States and Japan will decline. The TPP agreement will further integrate Japan's economy and supply chain with North America. The TPP agreement is crucial to Japanese Prime Minister Shinzo Abe. All along, Shinzo Abe said that the TPP agreement will help Japan's much-needed structural reform. Japan's structural reform will promote Japan's economic growth potential. 5. China is not in the TPP agreement, but it may be in the future. Although TPP is often regarded as an agreement that the United States wants to restrict China, its position has softened in recent years. China has indicated that it will pay close attention to the TPP process. Many American business people believe that if the TPP agreement is to be truly implemented, more countries need to join, especially China. 6. TPP agreement will make trade agreements make new breakthroughs in environmental and labor standards. Since 2007, the United States has been required to discuss environmental and labor issues in trade agreements. For the first time, TPP enables relevant commitments to be fulfilled, and if it fails to fulfill it, it will face trade sanctions. For example, the TPP agreement helps to reduce trafficking in endangered species and alleviate the problem of overfishing. Malaysia, Vietnam and other countries will have to abide by labor clauses. Employers cannot impound the passports of migrant workers and charge them extra fees. In Vietnam, the government should give workers more freedom, allow rivals to create trade union federations, and strengthen competition. In addition, TPP also requires minimum wage. 7. TPP is controversial in many member countries. Canada's general election is in progress, and the TPP agreement is one of the hot topics among candidates. TomMulcair, leader of the New Democratic Party, said that if his party won the general election, it would not implement the TPP agreement. TPP has also been strongly obstructed in the United States. Trump, the leader of the Republican vote, has made it clear that he will oppose TPP. American labor organizations and environmental organizations hold clear opposition to the TPP agreement. On Sunday, a large number of protesters gathered in front of the conference hotel, chanting "Stop TPP". Some Democratic lawmakers have doubts about Obama's claim that the TPP agreement will help American workers, and opponents in the left-wing camp asked Democratic lawmakers to give up their support for the agreement. 8. TPP will involve currency manipulation, but it is only superficial. In the United States, currency manipulation is one of the most controversial issues. The yen weakened, giving Toyota and its peers a competitive advantage. The U.S. auto industry and its supporters in the U.S. Congress demand that the TPP agreement include "prohibition of currency manipulation". The U.S. auto industry demands trade sanctions to ensure the fulfillment of the exchange rate agreement. TPP member countries are all members of IMF, and most of them are also in G20. IMF and G20 have exchange rate requirements for member countries. The Financial Times quoted people familiar with the matter as saying that TPP will have higher requirements for member countries on currency manipulation, including separate and regular consultations. However, banning currency manipulation may be difficult to incorporate into the formal part of TPP. The finance ministers and central bank governors of TPP member countries agreed to implement parallel agreements and not to promote currency devaluation for the interests of their exporters. However, no member country wants to ensure the fulfillment of exchange rate issues through trade sanctions. 9. What problems may arise from TPP? Under the TPP agreement, middle-class workers may face more competition for extra low-cost labor, which is especially applicable to the automobile industry. The TPP agreement also has an impact on the dairy industry in some countries. Although the government has promised to protect the existing income of farms in the next 10 years, it still faces great obstacles. Furthermore, when businesses sue through * means, government decisions can be overturned in special courts. 10. TPP is not the end of North American Free Trade Agreement. TPP is not the end of North American Free Trade Agreement, but where there is a conflict between the two, TPP will prevail. Obama has said that he will implement new agreements including labor and environment, and TPP has done just that.