Trans-Pacific Partnership (TPP)
Definition
The TPP was a proposed trade agreement among twelve Pacific Rim countries concerning various matters of economic policy, which was signed in 2016 but never entered into force as required ratifications were not met.
Analogy
Imagine if you and your friends decided to form an exclusive book club where you all agree on what books to read and share them freely among yourselves. That's kind of what TPP was - an exclusive club where member countries agreed on trade rules amongst themselves.
Related terms
Free Trade Agreement (FTA): An FTA is essentially an agreement between two or more countries where they agree on certain obligations that affect trade in goods and services, protection of intellectual property rights etc., much like TPP.
Protectionism: This refers to government actions and policies that restrict or restrain international trade, often with the intent of protecting local businesses and jobs from foreign competition.
Trade Liberalization: This is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. TPP was a form of trade liberalization.
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