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Canada is a party to the Trans-Pacific Partnership (TPP) deal reached on October 5, 2015. The TPP is a free trade agreement between Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, Vietnam and South Korea. Critics argue that TPP goes far beyond the realm of tariff reduction and trade promotion, granting unprecedented power to corporations and infringing upon the consumer, labour, and environmental interests. Proponents argue that the purpose of TPP is to serve as a pathway to Asia-Pacific regional economic integration that will help support the creation and retention of jobs in Canada and the other TPP countries.
i) Suppose you are a classical economist, would you advise that Canada withdraws from the TPP deal? Why or why not? Explain.
ii) Suppose you are a Keynesian economist, would you advise that Canada withdraws from the TPP deal? Why or why not? Explain.
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