The Trans Pacific Partnership (TPP) deal is one of the most ambitious trade pacts ever signed; it involves twelve countries – United States, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. The aim of the pact is to strengthen ties between the twelve nations, cut down trade barriers and foster trading ties to generate economic growth. TPP could create an open market for goods and services, like the European Union. The twelve countries have a collective population of 800 million and are responsible for 40 per cent of world trade. TPP could bring annual income gains of $ 295 billion and create a future for free trade that could generate potential monetary gains of $1.9 trillion. The deal is considered to be economically attractive as it offers opportunities of trade to leading and well-functioning sectors of both emerging and advanced economies amongst the signatories. The deal is considered to be an essential prize of Obama&’s foreign policy, given the diverse group that are its signatories and that follow different economic approaches and financial standards. The countries involved are geographically dispersed and economically diverse, and it is for the first time that free-market economies and state-led economies, democratic and authoritarian regimes, will cooperate for trade. Nobel laureate Joseph Stiglitz believes that TPP would enhance the powers of multinational corporations, lower American job prospects and increase inequalities

The enlargement of TPP has been one of the top trade priorities of the Obama administration. As a result American businesses will have uninhibited access to the stable Asia-Pacific market. TPP gives the US an opportunity to lead, along with Japan, and integrate advanced and emerging economies further in the Asia-Pacific region. Interestingly China is not part of the trade deal; however Japanese Prime Minister Shinzo Abe said, it would contribute to regional stability if China joined. But China was not part of negotiations at any stage. During the last decade as US increased its cooperation with East and South Asian nations, China positioned itself as an economic partner through ASEAN +3 and the Chiang Mai initiative. Apart from economic gains TPP also fulfils a strategic role for the United States. Trade policies are part of the Obama administration&’s ‘pivot to Asia’ and therefore a constituent of its grand strategy. With less than a year left in office, the Obama administration has been successful in strengthening American military presence in the region and sought new partners like Vietnam and Myanmar; and now through the Trans Pacific Partnership deal has reasserted American influence in the region. Perhaps a hidden message for the Chinese.