On top of that, part of TPP is for countries to be updated of what the Feds's monetary policy and currency stance. This, i believe will reduce FX volatility. Interesting point to note; the 5 big banks whom previously charged with FX rigging are opposing TPP.
Another point, china is not included in TPP, though china is keen to be part of it. this is largely due to china's policy on rmb to ensure trade competitiveness.
TPP is not a new thing, but it is the terms that are interesting to note. especially in the midst of currency war between countries.
Trans-Pacific Partnership: Pact Finally Reached After First Mooted In 2006, Long Ratification Process Ahead
Historic Trade Deal Reached With Agreement To Lower Trade Barriers, Set New Rules
The final discussions of the Trans-Pacific Agreement (TPP) that started in Atlanta (US) last Wednesday (30 Sep) at last came to a unanimous agreement on Monday (5 October) between the 12-member economies, (accounting for 40% of the world GDP) that will result in sweeping trade liberalization through cuts in tariffs, trade barriers, establish common standards and integrate the region into a single manufacturing base market. The TPP started out as Trans-Pacific Strategic Economic Partnership between Singapore, Brunei, Chile and New Zealand in May 2006 but was transformed into the TPP we see today when US indicated interest to join the free-trade agreement with the four-country bloc in 2008. The rest of the countries in TPP are Australia (2008), Peru (2008), Malaysia (2010), Vietnam (2010), Mexico (2012), Canada (2012) and lastly, Japan (2013). Other interested countries waiting in the wings to potentially join the TPP include South Korea, Philippines and Colombia.
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