The Trans-Pacific Partnership Agreement - Case Study Example

The Trans-Pacific Partnership Agreement (TPPA) Name Course Instructor Date Introduction The Trans-Pacific Partnership Agreement (TPPA) is a private, global trade agreement among different countries in matters of economic policy. The trans-pacific partnership agreement seeks to lower the barriers to trade like tariffs and customs duty. It also seeks to establish a common structure of intellectual property (IP) law in the whole world and revise international rules on its implementation (Fergusson, 2010, p 558). The TPPA agreement’s goal is to enhance the international trade and investment among the partner countries to promote economic development, innovation and support the idea of the creation of the jobs across the world. Australia joined this Agreement the year 2008. Industry policy is the plan of Australia, and it's calculated effort to encourage growth and expansion of the industrial sector and other divisions in the economy (Fergusson, 2010, p 4)).  Discussion Key sectors include transportation, energy sector, and telecommunications. All signatory countries like Australia are required to conform their policies and laws to the agreement. The industrial policy is broken down into four categories. The first one is policy-related to economic analysis. This covers competitive analysis, benchmarking systems and general knowledge of banks; it has best practices that boost productivity. The second category is policy formulation which ranges from the complex exercise of how the industry will evolve from medium term industrial strategies, designed to assist it fit in national industry policies into the global economy. The third class covers service of policy implementation. Government of Australia should prefer to carry out the implementation of policies with the assistance of private sectors. Finally, policy monitoring and assessment, the industrial competitiveness is dynamic. Hence, it requires the stakeholders to monitor continuously how the strategies and policies progress well in the market. The anticipatory industry policies that are expected to be seen in Australia to facilitate Trans-Pacific Partnership agreement include: development strategies, economic cooperation, and removal of non-tariff barriers, tax concessions on tax, research and development among others (Blakeney, 2012 p 164). The government must set the standards to protect the digital freedom by protecting against the requirements, which may force companies to locate infrastructure in the markets they pursue to operate. Australia should subject commitments in environmental labor chapters to solve disputes. The same mechanism of enforcement is available in in the chapters of TPP agreement, which include the availability of trade contracts. In this case, the government of Australia must take necessary actions aimed at improving the ability and competitiveness of the domestic companies and the transformation of the structure (Katada and Solís, 2008, p 57). Development Strategies These are strategies aimed at capacity building and other commitments that can help to promote maintainable development. These policies help to promote economic growth, control of the child and forced labor, poverty reduction and promotion of food security. At the same time, the government of Australia needs to work in collaboration with the manufacturing industry to overcome market failure and enhance growth. Some of the policy measures are: Australia should remove non-tariff and tariff barriers that lower standard of living and hinders progression and development. The government should protect its workers and preserve the environment of suitable standards to be included in this agreement. Likewise, these commitments must be enforced fully. . Enhance security of food policies by reducing costs and red tape at the borders; to encourage science-based laws, regulation and strategies to guarantee food security. This promotes socio-economic stability in different regions (Blakeney, 2014 p 123). Policies on Corruption and Communication Australia should come up with stringent measures and rules to fight corruption in the industries. This is because public corruption undermines sustainable development, social welfare, and political stability. For any country to participate in TPP, it is required to agree with United Nations conventions against corruption. Therefore, the government of Australia should first adopt the laws banning corruption in industries and public service. The country must develop policies to protect digital form to encourage open markets and flow of data. Australia must establish strategies to reduce cost on communications and provide to low-income earners and rural people to access the internet. This will also save rural people from connections of mobile services to access information that can help local people grow stable crops and sell them at better prices globally. Similarly, there is a wide market and the internet that can be used for marketing and encourage the flow of formation of small business (Bin, 2010, p 245). Partnership Policies The country must pursue the approach of partnership with industry. This action agenda must be implemented in the formulation process for about 17 manufacturing and service industries. Similarly, it should be supported using strategic action plans, this involves the government working with industries in partnership. The government should also offer investment incentives to some projects that promote economic development (Singh, Heimans and Glasswell, 2014, p 824). Therefore, Australia must seek industries with poor track records of past programs and find some ways to restructure them by the provision of some incentives. Based on this, the government must strengthen the following policies. Reduce the research and development tax concessions. This means the government should increase its industry involvement in specific industry planning. The experts and skilled employees should also be recruited to act as strategic investment coordinator, by advising the industries on possible use of strategic investment projects and modification of existing policies to increase attractiveness as investment location. Incentives and Subsidy The government must direct the incentives for major investment projects that are considered to be in special circumstances and are in limited. At the same time, it must upgrade and adopt the highest standard of trade and agreement. These include unnecessary subsidies and improvement on implementation laws. Secondly, Australia must adopt highest labor standards of trade agreement- this will help in protecting right to form the unions and have a collective bargaining, which prohibit against forced labor, child labor, and employment discrimination as well as unfavorable working conditions in the TPPA. The government of Australia must establish strict measures to ensure the enterprises that are state-owned compete on a commercial basis and worldwide. This policy has an advantage in that; government corporations will widen its markets and can become international companies (Lorenzen and Lorenzen, 2001, p 43). Streamline Cutting Red Tape and Customs Australia should develop efficient, transparent, and effective procedures that help to transport goods and services across the border as fast as possible. This helps the medium-sized and small businesses in Australia and other trading countries in TPP, which find border procedures and customs serious challenge to increasing the imports and exports in international markets. Various procedures that may be used to streamline procedures of custom and red tape include; reduction in cost for legal traders, strengthen border security and provide benefit to small and medium companies of which paperwork may cause delays apart from being competitive or not. This can be achieved if Australia publishes all regulations, procedures, and laws of its customs on the internet in accepted TPP language (Van Stijn, 2007, p 21). It must ensure the shipments move through the port within a short time, and a period not longer than necessary. This should comply with rules of its custom and other countries to provide advance rulings on estimates and other matters of customs. Which helps to avoid unnecessary delays in the arrival? Australia government must provide accelerated treatment of customs to express shipment delivery, and low-level shipments under which customs cannot impose tariffs. Consequently, it should strengthen cooperation against prohibited trade in fake goods, trafficking of wildlife and unlawful transshipped through the countries in TPPA. Additionally, Australia must direct penalties objectively, with laws and regulation to avoid conflict of interest (Faunce and Townsend, 2011, p 85). Other Policies Other facilitative industrial policies include; abolishment of businesses for research and development and replace it with strategic support program of research and development. Reduce funding for export scheme development and export trade campaign. New less costly assistance programs should be introduced in all major industries. Remove payment of bounties to ship building. Increase grants and other methods to attract international investors in Australian industries. There should be greater incentives for innovation, private research, and growth and greater export incentives. The establishment of invest Australia department should be located in the industry department science and resources. This should work closely with strategic investment coordinator. The government of Australia should make long-term commitments to industry policy strategy to reduce uncertainty and plan. The government should also specify the period of its company policies to guide the future direction of the policy (Elms and Lim, 2012, p 34). Finally, Australia should make a serious commitment to the liberalization of trade through its TPPA membership. It should agree to the goals of TPPA, which include free trade and investment for both developed and developing countries. It is important that Australia recognize its importance and its restrictions to bold regional commitment. It should introduce automotive competitiveness and the investment scheme to assist facilitation and government approval processes for projects that have total capital expenditure. Promote accountability, transparency and participation in the policies of the international decision making. These are the building blocks of trust, honesty, good governance, and commitments in TPP. These policies ensure that Australian citizens can make their voices shape their future (Blakeney, 2013, p 108). Conclusion As seen above, Trans-Pacific Partnership Agreement (TPPA) is a secret, global trade agreement among different countries in matters of economic policy. The countries are so far eleven with inclusive of Australia. On the other hand, Industry policy is the plan of a state, and it's calculated determination to encourage growth and expansion of the industrial sector and other sectors of the economy. Some of the main sectors are categorized into transportation, energy sector, and telecommunications. Numerous anticipatory industrial policies are expected to be seen in Australia to facilitate the trans-pacific partnership agreement TPPA. They include; development strategies, economic cooperation, and removal of non-tariff barriers, tax concessions on tax, research, and development. There is also approach for the partnership of government with industry, policies to reduce corruption, direct the incentives for major investment projects and the standards should be used to protect the digital freedom. Bibliography Calling, A., & Ravenhill, J, 2011, Multilateralising regionalism: what role for the Trans-Pacific Partnership Agreement?. The Pacific Review, 24(5), 553-575. Faunce, T. A., & Townsend, R, 2011, The Trans-Pacific Partnership Agreement: challenges for Australian health and medicine policies. Medical Journal of Australia, 2(194), 83-86. Armstrong, S. (2015). 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Blakeney, M, 2013, Pacific Solution: Australia and Negotiation of the Trans-Pacific Partnership Agreement (TPPA), The, UW Austin. L. Rev., 37, 108. Elms, D, 2012, Getting from here to there: stitching together goods agreements in the Trans-Pacific Partnership (TPP) Agreement. Blakeney, M. L, 2012, The Pacific Solution, The European Union's Intellectual Property Rights Activism in Australia's and New Zealand's Sphere of Influence.INDIGENOUS PEOPLES'INNOVATION INTELLECTUAL PROPERTY PATHWAYS TO DEVELOPMENT, 161-184. Van Stijn, E., Bjørn-Andersen, N., Razmerita, L., & Henriksen, H. Z, 2007, January, Improving international e-customs--the European itaide initiative. InDigital Society, 2007. ICDS'07, First International Conference on the (pp. 21-21). IEEE. Lorenzen, K. H., & Lorenzen, K. H, 2001, Report on fiscal incentives and subsidy schemes influencing the use of renewable energy in Denmark, Alter, Ener-IURE Project Phase II. Katada, S. N., & Solís, M, 2008, Cross Regional Trade Agreements: Understanding Permeated Regionalism in East Asia. Springer Science & Business Media. Office of the United States trade representative, 2015, October, retrieved from>>>https://ustr.gov/tpp/#upgrading-isds Read More