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Trade with the rest of the world is a privilege that the rich nations of today allow the developing nations to have. Global sustainable development can occur when developing nations produce the goods and services that they need and when developing nations import the products that they need but cannot produce. Global sustainable development requires that developing nations such as China and India have trade relationships with developed nations. In turn, developed nations need to import goods and services from developing countries. This dependence on developing nations is the source of the supply-side constraints that developed nations face as they try to achieve global sustainable development.
For now, these three trade agreements are the most advanced. The initiative for the TPP came from the United States. The United States and Japan have already negotiated a free trade agreement. The intention of the United States is to negotiate trade agreements with countries that account for 40% of the world's GDP by the year 2020. This agreement has been called, ‘
In addition to the considerations for trade that involve trade agreements, there are other considerations in the optimal path to global sustainable development. Developed countries need to produce the goods and services that they consume, but they also need to import the products that they cannot produce in their own countries. This trade in the goods and services produced outside of their own countries is a prerequisite to the efficient growth of their economies.
The end of significant protectionism is one of the defining issues of the 21st century. In the next section, we will examine the prospects for major trade agreements of the 21st century. We will look at the prospects for the Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP), and the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada. These are just three of the major trade agreements of the new century. They have been negotiated over the last decade, but are not yet ratified by their respective parliaments. The United States has been unable to complete ratification of the North American Free Trade Agreement (NAFTA) because of opposition to the agreement by U.S. citizens. The rest of the world is watching to see how the United States will move forward with the remaining trade agreements. There is little doubt that the new century will see much more trade and a much greater integration of the world economy.
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