The Trans Pacific Partnerships Negotiations (TPP) and World Trade Organization (WTO) are two large bodies that are involved with enhancement of trade between and among member states, in a fair and just manner. WTO is the only global institution that is involved with formulating rules of trade between its members. Its main function is to ensure that trade flows smoothly and all the concerns and issues that are raised by member countries are tackled and addressed amicably. WTO constitutes countries from all the regions and continents of the world (Bossche 8). However, over the past few decades, there has been an observed increase in regional trade organization and bodies that have come up to promote trade in their countries between and among member states, and TPP is among them.
The reasons as to why there has been an observed increase in the growth of regional trade bodies has been attributed to what has been termed as bureaucratic and long process that are experienced at the WTO in formulating policies that determine trade issues. This has discouraged some members, and resulted to formation of regional bodies. WTO has been criticized to be unrealistic in terms of formulating policies to regulate trade in the world at large. It has assumed a level playing ground between and among countries, and this has disadvantaged some countries at the expense of others (Hoekman, English & Mattoo 46). Due to such and similar or related concerns that have been raised, resulting from draw backs experienced from the WTO, regional bodies have opted for another way to realize their trade goals and objectives.TPP aims to integrate the economies of Asia- Pacific region, and its member countries include Brunei, New Zealand, Singapore, Australia, Malaysia, Chile, Vietnam, Canada, Mexico, Peru and the United States (US).
It is important to note that member countries of TTP consists mostly of emerging economies in the Asian region and few developed economies in the Pacific region. WTO on the other hand has a membership of about 159 countries, and it is headquartered in Geneva, Switzerland. It was established in the year 1995. Among its functions include but it is not limited to administering WTO trade agreements for the member countries. WTO also provides forum for which negotiations take place between and among its members or any interested bodies and stakeholders that are involved in global trade and production.WTO has to ensure that agreed upon trade rules and agreements for its member are adhered to and therefore it has to monitor national trade of member countries. Technical assistance is offered to member countries that enhance and improve trade opportunities, and fully exploit opportunities brought by the trade bodies. This it is observed to be done mostly for developing countries. WTO has also a mandate to corporate with other international organization such as the International Monetary Fund (IMF), The World Bank, and United Nations among others. Regional bodies supporting trade also works closely with the WTO.
South Korea and China have shown interest in joining TTP. TTP member countries have appointed ministers from their respective countries that represent them in discussing different positions regarding trade in their countries. TTP has allowed and encouraged bilateral and multilateral agreements between its member countries (Schott, Kotschwar & Muir 34). Most of the member countries of the TTP are also members of the WTO.
WTO and TTP have differed in a number of aspects. In terms of membership, WTO has a bigger number of members that come from all parts of the world unlike the TTP which has a limited number of members coming from the Asia-Pacific region. The two bodies are also located in different places and regions, and they conduct their businesses from different regions. WTO allows any interested member from any country to join it, but this cannot happen with the TTP because TTP is a regional body and only members from the Asia- Pacific region can join the trade body (Lim, Elms & Low 30). This is the reason as to why South Korea and China have shown interests in joining the body, unlike the WTO which any member can join including even those coming from the Asia-Pacific region. WTO meetings and assembly is conducted from one place, which is their headquarters in Geneva, but the TTP meetings are held from different member countries on a rotational basis.
In terms of functions, the two trade bodies have been mandated with more or less similar tasks of promoting and enhancing trade relations between and among member countries. Both trade bodies allow member countries to send representatives or ministers in their assemblies who represent the various interests, discuss and participate in such negotiations on behalf of their countries (Tellis, Marble & Tanner 17). Member countries from both trade bodies have to approve parties interested in joining the group, and there are stated rules and conditions that have to be followed. Both trade bodies are involved with similar functions that include formulating trade agreements that will propel the interests of member countries to realize provision of forums for negotiation, technical assistance to member countries and implementing agreements reached at.
Scholars and experts in international trade and regional agreements have stated that there is possibility that regional bodies might replace the global body of WTO (Bossche 22). This they attribute and relate to the increased trend in formulation of regional bodies in the world. Countries have realized that regional bodies provide a forum that encourages trade between member countries, and it is the only place where interests of certain countries or regions can be secured. It is also argued that negotiating between and among fewer country members presents the possibility of coming up with a clear-cut agreement that will take care of the interests of the members. The time spend in reaching such agreements is less unlike in the WTO or global bodies, and therefore implementing such decisions immediately might have a positive impact to member country’s economy and promotion of trade.
The conveniences realized from engaging in regional bodies in terms of time, speed and balance of trade and investment has encouraged many countries of the world to embrace the ideology, and this presents the possibility in future of WTO being replaced completely with such bodies. There is a possibility that countries will withdraw from being members of the WTO because it will be replicating the same functions and duties performed by regional trade bodies, Such as TTP that have proved to be effective and efficient in promoting trade between and among member countries (Lim, Elms & Low 14 ).
Works Cited
Bossche, Peter V. D. Law and Policy of the World Trade Organization: Text Cases and Materials. Cambridge: Cambridge Univ Press, 2013. Print.
Hoekman, Bernard, Philip English, and Aaditya Mattoo. Development, Trade, and the WTO: A Handbook. Washington: World Bank, 2002. Print.
Lim, C L, Deborah K. Elms, and Patrick Low. The Trans-Pacific Partnership: A Quest for a Twenty-First Century Trade Agreement. Cambridge: Cambridge University Press, 2012. Print
Schott, Jeffrey J, Barbara Kotschwar, and Julia Muir. Understanding the Trans-Pacific Partnership. , 2012. Internet resource.
Tellis, Ashley J, Andrew Marble, and Travis Tanner. Strategic Asia 2010-11: Asia's Rising Power and America's Continued Purpose. Seattle: National Bureau of Asian Research, 2010. Print.
