Home / Knowledge / News / Textiles / 'TPP especially credit positive for Asian sovereigns'
'TPP especially credit positive for Asian sovereigns'
17
Oct '15
The recent pact on the Trans-Pacific Partnership (TPP) trade agreement is credit positive for all 12 participating sovereigns, but especially for those in Asia, Moody's Investors Service said in a report titled "Trans-Pacific Partnership to Bolster Trade and Growth, a Credit Positive."

The deal will reduce the cost of trade and open up new investment opportunities, supporting growth. While full details of the agreement have yet to be published, greater access to the US for their goods should help to make Asian countries the biggest beneficiaries in GDP-relative terms, the report said.

The TPP involving Australia (Aaa stable), Brunei (unrated), Canada (Aaa stable), Chile (Aa3 stable), Japan (A1 stable), Malaysia (A3 positive), Mexico (A3 stable), New Zealand (Aaa stable), Peru (A3 stable), Singapore (Aaa stable), the US (Aaa stable) and Vietnam (B1 stable), will increase market access, lower or eliminate tariffs and set standards in areas including intellectual property rights, environmental and labor conditions, and government procurement.

Vietnam's apparel and shoe manufacturers will profit from lower import duties with the US and Japan. Likewise, Malaysia's palm oil, rubber and electronics' exporters will see substantial value from the TPP deal. In Japan, cars and auto-parts makers in particular stand to do well out of the agreement.

Australia and New Zealand's farmers will also benefit from increased market access and lower tariffs on their goods. For Singapore, which has trade agreements in place with nine TPP countries, the TPP will complement these existing pacts and boost investment and trade flows with partner nations.

Another positive aspect of the trade negotiations has been to act as a catalyst for reform in several countries in the region, such as Japan and Vietnam.

One modestly credit-negative aspect to the trade deal is that it could hurt governments' fiscal balances by reducing their customs revenues over the longer term. But additional receipts from an expected uptick in economic growth due to the agreement are likely to offset foregone tariff revenue, the report said. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search