Mexico, the least benefited by the TPP, alert World Bank

While Mexico’s exports grow 4.7% by 2030 with the TPP, the Vietnam would see a 30% growth; nations with trade restrictions are those that derive greater benefits. Of the 12 countries that signed the Trans-Pacific Partnership Agreement (TPP, in English), Mexico will see fewer benefits, both in export growth as the (Gross Domestic Product) GDP, according to a World Bank analysis. In the next 14 years, Mexico’s exports would grow only 4.7% due to the reduction of tariffs of the signatory countries. This is significantly lower than the 30% growth of exports from Vietnam experience or 23.2% projected for Japan’s exports.

Other signatories economies that receive a strong boost to its exports are Malaysia, New Zealand and Peru, with 20.1%, 12.8% and 10.3%, respectively. In contrast, the economies will see lower export growth to double digits in 2015-2030 will be the United States (9.2%), Brunei (9%), Singapore (7.5%), Canada (7%), Chile (5.3%) and Australia (5 percent). A Saga of them all is Mexico. The analysis “Potential macroeconomic implications of the TPP” slogan that countries will see a greater benefit for the trade agreement is currently facing severe restrictions on international trade. “The (positive) impact could be considerably higher in countries facing high barriers to trade, such as Vietnam and Malaysia. Countries that export labor-intensive products work with low-income and low-skilled households could expand, “reads the research. Based on export growth in the size of the economies and the weight of the export sector in each of them, the World Bank released its estimates of the impact that the TPP in GDP growth. For our country, the projection is a positive impact on GDP of 1.4%, higher than the US (0.4%), Australia (0.7%), Chile (1%) and Canada (1.2%).

But Asian economies would be that would be the best results in terms of economic growth, highlighting Vietnam with an increase in GDP of 10%, followed by Malaysia (8%) and Brunei (5%). Other countries with projected growth over the Mexican are New Zealand (3.1%), Singapore (3%), Japan (2.7%) and Peru (2.1 percent). With respect to nations outside the agreement, the analysis displays indirect trade benefits for Colombia and Russia. Unlike Thailand, South Korea and the Philippines, this would be detrimental effect on their exports although according to the authors, these would be limited. The signing of the TPP is scheduled for February 4 in Wellington, New Zealand.

Source: MéxicoXport