Trans-Pacific Partnership through the Lens of

Liberalism

GROUP PROJECT:215131002 – RIZKI INDRAWANSYAH

215131008 – HAFIZAH MURDHATILLA215131012 – ALLDO FELIX JANUARDY215131015 – YUNI ARISANDY SINAGA

215131018 – FELIX SHARIEF215131019 – BAYU ZATRI

To be presented at the class of Diplomacy and Security in International Relations on 13 October 2015

Trans-Pacific Partnership (TPP)

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Glance First negotiation conducted in 2003 and concluded on 14 Oct 2015.Comprise of 12 countries and hold 40% of world’s economy .Five major features that will set a new standard in global economy.Attract other countries.

Liberalism in International Relations

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Juliet Karboo and James Lee Ray (2011):

Combination of beliefs that reject power politics, and relies on international cooperation and shared interests between actors in order to shape state preferences and international relations

Multiple connections across nation-states and non-state actors to bolster maximum benefit of economic cooperation.

Complex interdependence in the international system means that states engage in and benefit from cooperation.

• Scott Burchill et al (2005): Free trade and the removal of barriers

to commerce are at the heart of interdependency theory.

Conflict between states would be reduced by creating a common interest in trade and economic collaboration among members at the same geographical region.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Units of Analysis Stephen W. Waltz (1998): Amitav Acharya (2007):

Competing Units Liberalism

Main Theoretical Preposition

Concern for power overridden by economic/political considerations

Main Unit of Analysis

States

Main Instruments Varies (international institutions, economic exchange, promotion of democracy)

Modern Theorists Michael Doyle, Robert Keohane

Representative Modern Works

Keohane, Francis Fukuyama

Post-Cold War Predictions

Increased cooperation as liberal values, free markets, and international institutions spread

Main Limitations Tends to ignore power

Competing Units Liberalism

Main Actors States, MNCs, international organisations

Primary Goals of States Cooperation and coordination to achieve collective goals

Preferred International Order

A collective security system underpinned by free trade, liberal democracy and institutions

Primary Mode of Interaction between Units

Two-level (domestic and international) bargaining backed by causal idea – trade and other forms of functional institutionalisation.

A Major Variation Neo-liberal institutionalism – Keohane.

Offshoots/Research Programmes

Hegemonic stability Theory (Kindelberger), Democratic Peace Theory (Kant, Doyle), Interdependence Theory (Kant, Mill, Angel)

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Main Actors Who are the actors? States and Non-States. Non-States are including the TPP itself and private sectors. Commercial liberalism introduces economic interdependence and free

trade among the actors which becomes a force for peace. Liberal institutionalism facilitates cooperation for the interests of the different actors which also fosters collective security and attempts to manage conflict. (Amitav Acharya, 2007).

The TPP agreement reached consensus between the state actors on lowering tariffs on certain types of goods, as well as collective production within different industries. This form of economic cooperation will ensure the economic interests of state actors, as well as the multinational corporations, for further joint growth. All actors will be relying on each other for the different factors of its production, whether it be natural, human and capital resources.

The TPP itself becomes an institution and will act as a forum for negotiations and dispute settlement. However it can be predicted that the members of this forum will remain to be states only, with the vested interests of the different corporations and industries the nation represents. Never the less, the joint interest represents 40% of the global economy and therefore cooperation is ensured for the prosperity and security of the states’ economies and the corporation’s growth.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Primary Goals of State In liberalism, cooperation and coordination to achieve

collective goals could be seen in a form of regionalism. Regionalism is a policy and state project in which state and

non-state actors to cooperate and coordinate strategies in order to achieve an interest in a particular area. The objective of regionalism is to seek and promote common interest in one or more issues. (Mary Farell, 2005).

Facilitated by norms, domestic institutions and a high degree of interdependence, countries within a regional community have a tendency to join in the community. States see themselves as fundamentally linked to other states, bound by common norms, political experience, and regional location. (G. John Ikenberry and Jitsuo Tsuchiyama, 2002).

TPP will be transformed into a foundation to expand regional integration and also be a catalyst for advancing global trade liberalisation.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Preferred International Order In liberalism, international order is set by a collective

security system underpinned by free trade, liberal democracy and institutions.

Use the concepts of trade as an instrument to show their existence in the dynamics of international political economy, and aspect of the embodiment of free trade is the free market.

The international system in liberalism is defined and characterized by interdependence and cooperation rather than anarchy. This interdependence strengthens the relations between the states in the international community. Additionally, with the manifestation of free trade. (André Broome, 2014).

Trade and competition between actors are viewed as mutually beneficial and thus can be resulted in positive-sum rather than zero-sum outcomes where all participants can gain benefits. (Robert O'Brien and Marc Williams, 2013)

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Primary Mode of Interaction between Units Interdependence liberalism theory stipulates that increase

interdependence between countries reduces the chance of them engaging in conflict.

Peoples and governments are affected by what happens elsewhere, by the actions of their counterparts in other countries. Thus, a higher level of transnational relations between countries means a higher level of interdependence – that also reflects the process of modernization, which usually increases the level of interdependence between states. (Robert Jackson and Georg Sorensen, 2010)

The early theorist of interdependence liberalism theory, Keohane and Nye emphasises the importance of non-state transnational actors in interdependence theory . Thus, militaristic approach in international relations becoming less-relevant. Economic and institutional instruments are more useful. Welfare is the main purpose and common goals.

According to the theory, TPP is also a form of interdependence between countries through certain areas of interaction.

TPP would contribute to the current world global politics and economy architecture.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Main Limitation There is a view in liberalism that tends to ignore the role of power. What is power? What constitute as a power? Assumptions: Used as a tool for major power to dominate regional/world’s

economy. Unequal distribution in its implementation Equality amongst participated countries – inequality? John Locke explains that liberalist believe in individuals that are

competitive but also can engage in cooperation or collaboration. In that sense, liberalist optimist when seeing all actors and parties in TPP employs their reasons, they can arrive at mutually beneficial cooperation. (Robert Jackson and Georg Sørensen, 2013)

Stephen D. Krasner mentioned that choices have to be made, given the uneven or asymmetric distribution of benefits and costs associated with interdependence, these relations have to be managed if major conflicts are to be avoided. (Stephen D. Krasner, 1976).

TPP can be implemented accordingly to its expected nature, which is a sense of mutual economic cooperation. These agreement has encompassed aspects of liberalism values and power is indeed is not taking big portion on its progress and implementation.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Conclusion International system is characterised by interdependence and

cooperation rather than anarchy. Interdependence strengthens the relations between the states in the international community.

TPP is the manifestation of liberal value of free trade. The actors are not just the state, but also the institution and private sectors.

Regionalism could be seen as a tool of states to bolster partnership in particular area. The need of cooperation has brought the countries in the Pacific Rim to create a common market of TPP.

Regionalism is also expanding with the norms and specific values to answer the region constellation.

TPP could also be the means for democratic state members to promote democracy to other TPP non-democratic state-members

A sense of mutual cooperation will diminish the urge to seek a power, and ultimately will bring the nations to work together in peaceful manner and seek common prosperity

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

References Acharya, Amitav. 2007. “Theoretical Perspectives on International

Relations in Asia”. Conference on International Relations in Asia: The New Regional System. USA.

Broome, André. 2014. Issues and Actors in the Global Political Economy. New York: Palgrave Macmillan.

Burchill, Scott et al. 2005. Theories of International Relations. 3rd Ed. New York: Palgrave Macmillan.

Farell, Mary et al. 2005. Global Politics of Regionalism. London: Pluto Press.

Ikenberry, G. John and Jitsuo Tsuchiyama. 2002. “Between Balance Of Power And Community: The Future of Multilateral Security Cooperation In The Asia Pacific”. International Relations of the Asia-Pacific, Vol. 2.

Jackson, Robert and Georg Sorensen. 2010. Introduction to International Relations: Theories & Approaches. 3rd Ed. Oxford: Oxford University Press.

Karboo, Juliet and James Lee Ray. Global Politics. 10th Ed. Boston: Wadsworth.

Keohane, Robert O. and Joseph S. Nye. 2012. Power and Interdependence: World Politics in Transition. 4th Ed. Boston: Longman Classics.

Krasner, Stephen D. 1976. “State Power and the Structure of International Trade”. World Politics, Vol. 28 No. 3.

O'Brien, Robert and Marc Williams. 2013. Global Political Economy: Evolution and Dynamics. New York: Palgrave Macmillan.

Waltz, Stephen W. 1998. “International Relations: One World, Many Theories”. Foreign Policy, No. 110, Spring.

Trans-Pacific Partnership through the Lens of Liberalism, 13 October 2015

Thank you!