TPP, TTIP, and Comparison Between TTP/TTIP Countries and the BRICS

6 Mar


“The main purpose of this article is to
show how all the world’s events are just
pebbles in the mosaic of one global power.
May God save the world.”
The Observer, 2014TPP – One Piece of a Gigantic Puzzle
The TPP did not float to the shores of Australia in a sealed bottle. It has been many years in the making. It is part of a wider plan never discussed in our media. Australia’s participation in the TPP is a small part of a geopolitical power play by the US and its largest corporations. This powerplay has two major components. One is economic and the other is political/military. How does the TPP in Australia fit into the massive changes taking place in the world economy? How do these changes fit into the international political and military situation?Who is in the TPP? Who is Not in the TPP?
The TPP is not just a local imposition on our sovereignty and legal system. The negotiations on what became the TPP began in 2005.(1) The main nasty element of the TPP, the Investor-State Dispute Settlement system, was developed in the late 1980s.(2) The TPP covers 12 contries which border on the Pacific: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. Unlike standard bilateral trade agreements, the TPP is a one size fits all treaty carefully designed by 600 of the largest and most powerful corporations in the world. It is forced on the politicians of the different countries, not negotiated by them.The TPP does not include any of the Asian Tigers in our region. It does not include China, which has the second largest economy in the world as measured by its Gross Domestic Product.(GDP). Nor does it include important South East Asian countries like Indonesia – 9th largest GDP, South Korea – 11th, Taiwan – 21st, or Thailand – 22nd. The table below shows the GDP rank of the countries involved in the TPP.(3) Slightly more than half of them rank lower than these important Asian economies. What the 11 countries joining with the US in the TPP have in common is that they are politically very close to the US. Are these 11 countries in the TPP simply because they are client states of the US and prepared to accept the dictates of the the US corporations?

Countries in the TPP with GDP rank:
United States 1
Japan 4
Mexico 11
Canada 15
Australia 19
Malaysia 28
Vietnam 37
Singapore 40
Chile 42
Peru 47
New Zealand 69
Brunei 116

And There is More – the TTIP!
The TPP is not a one-off. There is another TPP clone being negotiated between the US and the EU called the Transatlantic Trade and Investment Partnership (TTIP). It developed out of three important groups. In 1995, a pressure group of business people was founded. Later the Transatlantic Business Dialogue (TABD) was set up by public authorities on both sides of the Atlantic. In turn this led, in 1998, to the creation of an advisory committee, the Transatlantic Economic Partnership.(4) Finally negotiations got serious about 2013 and it is supposed to be finalized this year. The TTIP covers the US and 28 countries.(5) Three European countries are missing: Iceland, Switzerland and Norway.

One might also wonder where Israel fits into this global economic picture. Israel’s rank of 54 puts it between Portugal – 53rd and Morocco – 55th. In terms of its economic weight, Israel is clearly a lightweight. Really it is a US funded garrison state in the Middle East. It has political and military influence far above its lowly position in the world economic system. In economic terms it is outranked by the following Middle Eastern countries: Saudi Arabia – 14th, Turkey – 17th, Iran – 18th, Egypt – 24th, the United Arab Emirates – 32th, Algeria – 34th, Iraq – 35th, Qatar – 49th and Kuwait – 52th. If there ever was an national mouse that roared, it is Israel.

There is an Alternative to the TPP/TTIP Trade Block – the BRICS
Outside of the TPP/TTIP trade block several countries are coming together to create a new economic world order. In reality this is a direct challenge to the TPP/TTIP trade block because they want to do things very differently. Their goal is to replace the current system controlled by the International Monetary Fund (IMF) and the World Bank, which in turn are directed by the international 1% in the US and the EU. One of their main goals is to use local currencies rather than the US dollar for imports and exports. The most prominent countries working on this project are Russia and China. The media, our government and all major political parties in Australia are silent about these new and quite public plans.

The most prominent countries leading this movement are called the BRICS (Brazil, Russia, India, China, and South Africa). The BRICS countries also play a role in the Shanghai Cooperation Organization (SCO), the Asian counterweight to NATO. The SCO is made up of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, India, Mongolia, Iran, and Pakistan.

Comparison Between TTP/TTIP Countries and the BRICS
It is useful to look at the GDP of the BRICS countries and compare them with some of the major EU countries. As we have seen China is ranked 2nd. India is 3rd. Russia – 6th, Brazil – 7th, and South Africa is 29th. By comparison, Germany at 5th is below China and India. France at 8th is below Russia and Brazil. The UK, at 10th, is just below Indonesia at 9th, and just above Mexico.

Top 10 countries by GDP rank:
2. China BRICS
3. India BRICS
4. Japan TPP/TTIP
5. Germany TPP/TTIP
6. Russia BRICS
7. Brazil BRICS
8. France TPP/TTIP
9. Indonesia Independent

Thus of the top 10 countries ranked by GDP, four of them are in the BRICS, five of them are in the TTP/TTIP block. The only “non-aligned” country in the top 10 is Indonesia. Notice that the BRICS countries are not economic lightweights, and to think of them as “underdeveloped” is to miss the point. In economic terms they are right up there with the Big Boys of the West. Further, if you think about the aggressive and antagonistic attitude of Prime Minister Abbott toward Indonesia, it is interesting to realize that ranked in terms of its GDP, it is easily on a par with his native UK. He is certainly not thinking about Australia’s economic and political future in Asia.

The following table highlights an interesting fact about a difference between the major Western countries in the TPP/TTIP trade agreements and the major BRICS countries.(6) All of the major Western countries in the TPP/TTIP agreements have a greater government debt to GDP ratio than any of the BRICS countries. Note also that Australia’s debt to GDP ratio is at the lower end of the percentages for the BRICS countries. While the Liberal/National Coalition talks of Australia’s level of government debt as if it was a sign of gross economic mismanagement – and Labor does not seem to dispute this – Australia’s debt level is relatively low by world standards. It looks much better than the debt ratios of the large Western countries who run the IMF. Do they practice what they preach? It seems the LNP Coalition are just playing politics.

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4 Responses to “TPP, TTIP, and Comparison Between TTP/TTIP Countries and the BRICS”

  1. giselzitrone March 6, 2015 at 11:14 pm #

    Wünsche dir liebe Ute ein schönes und gutes Wochenende lieber Gruß Gislinde

    • auntyuta March 7, 2015 at 6:41 am #

      Danke, liebe Gislinde. Have a good weekend too! 🙂

  2. stuartbramhall March 8, 2015 at 10:18 am #

    There was a definite reason why China was excluded from Transpacific Partnership. The whole purpose of the TPP has been to isolate China economically and politically.

    • auntyuta March 8, 2015 at 1:02 pm #

      That’s right, Stuart, but then there is Brics now!

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