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Francis Tuan and Agapi Somwaru

The authors examine the liberalization of agricultural trade under the Trans-Pacific Partnership (TPP), employing a partial equilibrium approach to demonstrate the differences in impact on agricultural commodity trade, production, and consumption under a TPP with and without China, while abolishing all import tariffs and tariff-rate quotas.

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Ching-Yi Liu

The author analyzes the flexibility of intellectual property (IP) rights protection under the Tyrans-Pacific partnership (TPP), based on an advanced version of the TPP IP Chapter. He shows how the United States has been aggressively seeking stronger and less flexible IP right provisions than those included in existing international IP agreements, and argues that accepting higher standards of IP protections may not only be unnecessary in promoting investment and economic growth, but can also result in negative impacts on development due to price increases. Similarly, the unwillingness of the TPP members to truly balance public health needs with an aggressive patent agenda also puts the future of the TPP at risk. He argues that the TPP should pursue unreasonable “TRIPS-plus” (Trade-Related Aspects of Intellectual Property Rights) provisions and should balance the public interests of the TPP economies with IP protection.

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Dan Ciuriak and Jingliang Xiao

The authors focus on the impact of Taiwan’s TPP accession on the US economy. They examine the issue of accession strategies of prospective members, using the challenges that Taiwan will face as a test case.

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Peter C.Y. Chow

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Lee-in Chen Chiu

The author assesses the TPP’s impact on the pharmaceutical industry’s ability to achieve learning, a catch-up platform, and innovation of industrial cooperation between import and export countries, and job creation opportunities. Their literature review provides theoretical and empirical evidence on pharmaceutical pricing, patent protection, trade-induced foreign direct investment, and profit earnings between pharmaceutical export and import countries. The rising attention to the cost containment and strategic planning for medical devices innovation are also addressed, as well as innovative business medical insurance reimbursement for expanding the over-the-counter (OTC) pharmaceutical market. The chapter presents a statistical comparison of medical and pharmaceutical performance in Taiwan, which is one of the first countries in the world with a mandated National Health Insurance regime and single insurer (put in place in 1995). The market penetration of new drugs through institutional design can contribute to pharmaceutical innovation, which can lead to future international collaborations on compound formulas for herbal medicines, creating new market mechanism in the region.

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Edited by Peter C.Y. Chow

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Henry Thompson

The author applies a specific factors model to analyze the potential income redistribution inside Trans-Pacific partnership (TPP) countries due to increased trade and the changing prices of services, finding that there is a substantial income redistribution between three labor skill groups and industrial capital in the simulations. He argues that tax policies should anticipate rather than react to the pending income redistribution inside the TPP.

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Dan Ciuriak and Jingliang Xiao

The authors address how the founding 12 Trans-Pacific Partnership (TPP) members (the TPP12) will be affected by membership expansion, using Taiwan’s admission as a case study. They show that this would expand the overall economic gains for the TPP12 considerably, though they would have to give up preferential gains made at Taiwan’s expense. Accordingly, the path to a Free Trade Area of the Asia Pacific (FTAAP) through the expansion of existing free trade agreements (FTAs) faces the challenge of overcoming potential resistance from existing TPP members who might stand to lose rather than gain from the expansion.

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Peter C.Y. Chow and Bo-Xian Hsu

The authors present a computable general equilibrium (CGE) model simulation on an expanded Trans-Pacific partnership (TPP) membership to include Indonesia, Korea, the Philippines, Thailand, China, and Taiwan. They find that there is an incremental welfare gain and gross domestic product and trade growth as TPP membership increases.

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Peter C.Y. Chow

The author compares the impacts of four prospective members – Indonesia, the Philippines, Taiwan, and Thailand – on the United States (US) economy by assessing their respective interdependency, trade complementarity with the United States, and relative contributions to the global value-added in US exports. He uses a computable general equilibrium (CGE) model to show that the Trans-Pacific Partnership (TPP)12 will benefit from Taiwan’s inclusion. He further analyzes the comparative advantage of US services trade and the potential opportunity for the United States to exploit those markets of these four perspective new members.