Trans-Pacific Partnership (TPP)

Definition

TPP is a proposed trade agreement among twelve Pacific Rim countries concerning various matters of economic policy, which was intended to further integrate their economies.

Analogy

Imagine TPP as an exclusive club where members agree to certain rules for trading items. If you're not part of this club, you might find it harder to trade with those who are inside it.

Related terms

Free Trade Agreement (FTA): An agreement between two or more countries where certain barriers to trade are abolished or reduced.

Pacific Rim Countries: Countries that border the Pacific Ocean and are part of an economic and social region including Australia, China, Japan, South Korea etc.

Economic Policy: The strategy that government implements controlling its economic actions.