This year may bear witness to the finalisation of a number of major regional free trade agreements which may transform textile trading between nations. The Trans-Pacific Partnership (TPP), which had its genesis as Trans-Pacific Strategic Economic Partnership amongst four countries (Brunei, Chile, New Zealand, Singapore) in 2005, went into high gear in 2010 and now has eight additional members (Malaysia, Vietnam, Japan, Canada, Mexico, Peru, Australia, United States). The US president Barack Obama champions the idea, but he needs to persuade both houses of the US Congress to approve the agreement prior to its ratification. Similar to US free trade agreements (FTAs) in the past 25 years, TPP will have a restrictive "yarn forward" rule of origin for textiles. This rule requires that textiles and garments can qualify for duty-free entry to TPP member countries only if the yarn, fabric and assembly production steps are completed in member states. Besides its yarn-forward rule, TPP also has a list of commitments demanded of its members, including intellectual property rights, labour standards, competition policy, investment rules, the environment and the role of state-owned enterprises.
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