International Monetary Fund (IMF) Managing Director Christine Lagarde, who is currently in Peru to attend the World Bank Group and IMF Boards of Governors Meetings, welcomed the final agreement reached by member countries of the Trans-Pacific Partnership Agreement (TPP).
“The agreement reached today by the countries negotiating the Trans-Pacific Partnership is a very positive development. I have called for a policy upgrade to avoid a new mediocre in the global economy, and rekindling trade is an essential component of this agenda,” she said.
Australia, Brunei, Canada, Chile, the United States, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, TPP member countries, reached today a free trade agreement in Atlanta, United States.
She stressed that the agreement is not only important for its magnitude, but because signatories countries account for about 40% of the global gross domestic product (GDP).
“It also pushes the frontier of trade and investment in goods and services to new areas where gains can be significant,” she underlined.
According to Lagarde it is necessary to review all the details before offering “a comprehensive assessment,” including the transitional effects and spillovers.
“However, I expect that the TPP can pave the way to a new generation of deep trade integration efforts,” she stated in a press release.
Finally she encouraged other countries “to renew their efforts to complete ongoing negotiations” and urged the broader international community “to reignite multilateral trade initiatives” to ensure a cohesive global trading system.