While not ratified yet, members of TPPA will reap benefits in real estate arising from increased demand for its goods and services due to lower or zero tariffs.
The Trans Pacific Partnership Agreement (TPPA) has far-reaching consequences in almost all aspects of commercial life, including real estate.
In early October 2015, 12 countries in the Asia Pacific region signed this agreement which ranks as the biggest trade agreement in history – signatory countries account for 40% of total global output.
While the treaty must still be ratified by each and every party to it, its initial passage represents a giant moment in the integration of economies on each side of the Pacific. This article must be qualified, however, that since negotiations between countries were done mostly behind closed doors, the impacts discussed here are as much speculative as they are real, and only the passage of time can indicate whether these scenarios painted will come to pass.
Four countries in the ASEAN region are among the signatories of the agreement; Brunei, Malaysia, Singapore and Vietnam, with additional member countries interested in joining the free trade area in the future.
In this article, we will look at who are the biggest beneficiaries in the region, the effects the treaty will have on intra-regional trade, as well as the impact on investment opportunities in non-TPP signatory ASEAN states because of this landmark trade deal.
Thailand could see its exports affected
Thailand is one of the countries that could see its exports affected if it remains excluded from the TPP.