China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
2025 Market Outlook: Key January Events to Watch 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Stock Futures Dip as Investors Await Key Payrolls Data 
Wall Street Analysts Weigh in on Latest NFP Data 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Moody's Investors Service says that the withdrawal by the US (Aaa stable) from the Trans-Pacific Partnership (TPP) represents a lost opportunity, especially for countries that would have substantially expanded their export access to major markets. In addition, the end of TPP could slow the reform momentum the deal had fuelled.
Moody's conclusions are contained in its just-released report "Sovereigns -- Asia Pacific: US Exit from Trans-Pacific Partnership Represents Lost Opportunity for Asia".
Moody's notes that the TPP deal went far beyond existing free trade agreements (FTAs) by setting standards in areas including intellectual property rights, government procurement, environmental and labor conditions, and corruption prevention, in addition to reducing or eliminating tariffs and non-tariff barriers.
The deal also further increased access to trade -- even where agreements already existed -- applied to some hitherto protected markets, such as Japan's (A1 stable) agricultural products.
The significance of the deal is also testified by its scope and size - with the TPP signatory economies accounting for about 40% of global GDP.
In particular, the lost export and growth opportunities are material for Vietnam (B1 stable) and Malaysia (A3 stable), which would have benefited from the opening up of trade with the US, and relatively large foreign direct investment (FDI) inflows over the long-term. Moreover, TPP ratification in Malaysia would have necessitated reforms to state-owned enterprises (SOEs) and government procurement. It is now unclear whether such reforms will proceed.
For Japan, car-parts and auto-makers stood to gain from freer market access to the US, Canada (Aaa stable) and New Zealand (Aaa stable).
In the case of New Zealand, the TPP would have lowered tariffs on its important exports, such as dairy and beef. And for Singapore (Aaa stable), the TPP would have smoothed production chain linkages, and services would have gained greater market access.
And while a number of TPP signatory countries are working on other trade deals -- such as the Regional Comprehensive Economic Partnership (RCEP) -- with the exception of Free Trade Area of the Asia-Pacific (FTAAP) agreement, the potential benefits from these trade deals would be smaller than those of TPP, as they would cover a smaller share of global trade, overlap with existing arrangements and be narrower in scope.
