October 5, 2015 The Trans Pacific Partnership (TPP) arrived not a moment too soon. The proposed trade agreement must now be ratified by its twelve Pacific rim signatory countries.
With world economic growth already sluggish, data from the World Trade Organization confirms world trade is growing at a lower rate than the rate at which the world economy is expanding. Emerging economies have been hit hardest, depressing commodity prices along with commodity currencies.
The last time this happened was in 1985. One trade expert even suggests we hit ‘peak trade’ in 2007.
One characteristic of a Kondratieff Spring is expanding trade and trade agreements. The TPP opens a path for the arrival of the K-Spring but many more winter storms will be endured before it does.