What is the Trans-Pacific Partnership?

The Trans-Pacific Partnership (TPP)may soon be an acronym as recognizable asNAFTAbut this free trade venturecouldhave much moreeconomic strength and impact than its North American predecessor.

As Canada sets its sights on joining the club, many are asking what exactly our country would be getting, and giving up, to secure apotentially game-changing multilateralagreement.

What is the Trans-Pacific Partnership?

The Trans-Pacific Partnership is a free trade deal aimed at further expanding the flow of goods, services and capital across borders.

Itsfour founding membersNew Zealand, Chile, Singapore and Brunei may not be the usual suspectswhenit comes tohigh-powered global economic deals, but the trade-hungry countriesturned heads when they signed offonthe TPP's precursor, theTrans-Pacific Strategic Economic Partnership Agreementin 2005.

They pledged, among other things, to "enlarge the framework of relations among the Parties through liberalizing trade and investment and encouraging further and deeper cooperation to create a strategic partnership within the Asia-Pacific region."

'This is a further example of our determination to diversify our exports and to create jobs, growth and long-term prosperity for Canadian families.' Prime Minister Stephen Harper

The quartet faced relatively few obstacles in their quest to set upthe transnational deal, and the efforts soon caught the attention of five other nations: the United States, Australia, Peru, Vietnam and Malaysia, who joined in 2008.

The nine partners currently have a combinedGDP of more than $17 trillion.

Canada and Mexico are now being considered for membership, subject to the approval of the nine countries already involved including theirlong-time trading partner, the U.S.

Although negotiations involving Canada haven't begun in earnest,thefederal governmenthas already signaled its eagerness to get on with the process.

"This is a further example of our determination to diversify our exports and to create jobs, growth and long-term prosperity for Canadian families," said Prime Minister Stephen Harper from the G20 Summit in Mexico on June 19.

Where did it come from?

The TPP has its roots in the notoriously incremental dealings of the Asia-Pacific Economic Co-operation forum (APEC), a 21-member collective that seeks to promote free trade within and beyond the Asia-Pacific region.

Canada wasamong APEC's founding members,capitalizing on its Pacific Ocean coastline and itsinterest in freer trade. In 1989, itjoined the forum, whichincluded Japan, Indonesia, Australia, Brunei, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the U.S.

Throughout the 1990s, nine other membersincluding Chile and Vietnam alsojoined APEC.It is from this forum thatTPP's founding members would eventually springboard to expedite many of APEC's goals.

Early on, one of the TPP's stated objectives was to "support the wider liberalization process in APEC consistent with its goals of free and open trade and investment"by establishing a free trade area.

What's in it for Canada?

The federal government has been vocal about its plans to diversify trade. Itis pursuing trade deals with India and hasa foothold inChina and Japan. So far, however, Canada does not have a bona fide free trade deal in increasingly attractive Asia.

Admission tothe TPP would mean access toa bundle of growingeconomies.

Add to this the possibility that Japancould join the TPP, despite mounting protests in that country, and the economic and political traction of the groupincreases.

In fact, the TPP could become the world's largest free-trade zone one that is well formed, but also flexible enough to accommodate a growing membership.

With Canada and Mexico entering the talks, the countries involved represent 658 million people and a gross domestic product of $20.5 trillion, according to a release from the Prime Minister's Office.

TheTPP already includes some of Canada's major trading partners, notably the U.S., and could soon include Mexico which increases the pressure to protectCanada'seconomic position in North America.

Ottawa argues that TPP membership would be a boon to the integrated supply chain on the continent, and that a missed opportunity to join would have dire consequences.

CBC News national affairs editor Chris Hall notes that, if Canada is shut out of the group,national productscould become relatively more expensive, and therefore less appealing. Canada wouldalso have to deal with the group's tariffs.

On the flip side, abest-case scenario for ordinary Canadians would include new jobs andlower prices on everything from cheese to manufactured goods if TPP membership bolsters both import and exporttrade.

Indeed, the possibilities presented by membership are enormous, but so too are the potential risks.

What are the risks?

The major concerns surround what Canada will have to give up to join the TPP, and whether or not the costs will outweigh the benefits. The government has not released a cost-benefit study as it did during past negotiations with Europe and India.

Many are uncomfortable with the bargaining chips already on the table, especially control over Canada's marketing boards and the national supply ofeggs, chickensand milk.

It's an important point for some members especially the U.S. and New Zealand and some have speculated that Canada's supply management system, which controls domesticpoultry anddairy prices,trade restrictions and high tariffs on imports, will have to ease up before the country can enter the TPP.

Gerald Keddy, the parliamentary secretary to the trade minister,insisted that Canada's marketing boards will be protected.

"Let's be clear, we've signed free trade agreements with nine countries around the world and we've been able to look after supply side management in every single one of those," he said.

From the outside looking in, however, the details of a potential deal remain imprecise. It isn't even clear what the cost of admission was for other members.

"What did they give up, if they gave up anything?" asked Liberal trade critic Wayne Easter, who is not convinced of the merits of the TPP. "We need a net benefit for the country."

Another concern is that, as a late comer, Canada will have to accept several agreements made by thecurrent TPP partners before it is allowed to come to the table which will happen no sooner than the fall.

By then 12 rounds of negotiations will have taken place without Canadian input, according to the Canadian Press.

This reality hasn't fazed the prime minister, who says the negotiations are still at "fairly preliminary phases" and that Canada won't try to undo what hasbeen done.

"There is an accession process, so we don't disrupt the negotiations," he said.

Harper wasvague about the specific terms of Canada's entry into the TPP talks.

"As in any negotiation, nothing is agreed to until everything is agreed to by all parties."

What are critics saying?

The TPP has no shortage of critics around the world.

At home, many are questioning the assertion that Canada will steer clear of major and unprecedented compromises,arguing that the federal government has already worked hard to be considered a candidate.

'It's really a trade agreement for theone per cent and their corporate interests.' Maude Barlow, theCouncil of Canadians

"It's very, very clear that Canada had to make some significant concessionsin order to get into these negotiations," said Don Davies, the NDP trade critic.

"We've been given a seat at the table, but we've had our ability to negotiate significantly impaired," he added.

Citizens' organizationsand public advocacy groups who oppose the deal are gearing up for a fight that could be as intense and bitter as the one that lead up to NAFTA's implementation in 1994.

"It's really a trade agreement for theone per cent and their corporate interests," said Maude Barlow, the National Chairperson of the Council of Canadians, which opposed and continuesto criticize NAFTA.

"This is not going to be a good deal for Canadians."