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The Next Big Thing? The Trans-Pacific Partnership & Latin America

Kotschwar, Barbara and Jeffrey Schott. "The Next Big Thing? The Trans-Pacific Partnership & Latin America." Americas Quarterly (2013).

The hottest topic in world trade these days is the Trans-Pacific Partnership (TPP). Hailed as a state-of-the-art free trade agreement (FTA), it will unite 11 countries—Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam—with a combined GDP of almost $21 trillion (about 30 percent of world GDP) and $4.4 trillion in exports of goods and services, or about a fifth of total world exports. If you add Japan and South Korea—who are actively exploring entry later this year—TPP would cover 40 percent of world GDP and nearly a third of world exports. How will this trade agreement affect Latin America?

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