The recent agreement of the Trans-Pacific Partnership is about far more than trade. It’s about creating a new international regime in the Pacific that will reinforce trade rules, smooth inter-state relations and promote international harmony with China.
In the final stages of the Trans-Pacific Partnership negotiations, the U.S. is still pushing for the elimination of safeguards to regulate capital inflows and capital flight. Those controls have mitigated past crises and prevent others in economies that for decades have been buffeted by financial instability.
The TransPacific Partnership that is currently being negotiated will be neither an apocalypse nor a panacea. But what it will do is provide critical legal and institutional guarantees that will draw Asian investors to Latin America.