Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Comprehensive and Progressive Agreement for Trans-Pacific Partnership
StevoLaker · CC0 · source
Name	Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Type	Free trade agreement
Date signed	8 March 2018
Location signed	Santiago
Date effective	30 December 2018
Condition effective	Ratification by at least six signatories
Signatories	11
Parties	13
Languages	English, French, Spanish

Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a major free trade agreement among nations bordering the Pacific Ocean. It was formed following the withdrawal of the United States from the original Trans-Pacific Partnership negotiations. The pact aims to deepen economic integration, reduce tariffs, and establish modern trade rules across a significant portion of the Asia-Pacific region.

Background and history

The agreement originated from the earlier Trans-Pacific Partnership, a proposed trade bloc negotiated during the Obama administration and signed in Auckland in 2016. Following the 2016 United States presidential election, President Donald Trump formally withdrew the United States from the TPP in January 2017. In response, the remaining eleven nations, led by Japan and Australia, renegotiated the pact. Key discussions were held at the APEC summit in Da Nang and the final agreement was signed in Santiago in March 2018. The renegotiation suspended several provisions originally included to satisfy the United States, particularly in areas like intellectual property.

Member states and accession

The original eleven signatories are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement entered into force after ratification by the first six nations: Mexico, Japan, Singapore, New Zealand, Canada, and Australia. Subsequently, the United Kingdom successfully concluded accession negotiations, becoming the first new member to join the original group. Other economies, including the People's Republic of China, Taiwan, Ecuador, Costa Rica, Uruguay, and Ukraine, have formally applied or expressed interest in joining the partnership.

Key provisions and chapters

The agreement contains 30 chapters covering comprehensive trade rules. Key areas include the elimination of over 95% of tariffs on industrial and agricultural goods among members. It features chapters on Trade in Services, including financial and telecommunications services, and rules on electronic commerce to facilitate digital trade. The pact includes commitments on labor rights, referencing fundamental conventions of the International Labour Organization, and on environmental protection. Other significant chapters address State-owned enterprises, Government procurement, and intellectual property, though some TPP provisions on patent terms for biologics were suspended.

Economic impact and analysis

Analysts from institutions like the World Bank and Peterson Institute for International Economics have projected the agreement will boost member economies' GDP and increase trade flows. Studies suggest benefits for agricultural exporters like Australia, New Zealand, and Canada, and for manufacturing hubs like Vietnam and Malaysia. The pact is seen as a counterbalance to economic influence from the People's Republic of China in the region, though some critics argue it may pressure certain domestic sectors and affect public health policies related to pharmaceuticals.

Ratification and implementation

The ratification process varied by country, often requiring legislative approval. Japan and New Zealand were among the first to ratify the agreement in 2018. In Canada, ratification passed through the House of Commons following debates. Chile and Peru completed their ratification processes later. Each member state implements the agreement according to its own legal schedule, with tariff reductions and regulatory changes phased in over subsequent years. The commission, comprising ministers from each member, oversees implementation and administration.

Relationship to other trade agreements

The pact exists alongside and complements a network of existing bilateral and regional agreements in the Asia-Pacific, such as the ASEAN Free Trade Area and the Regional Comprehensive Economic Partnership. It is considered a "high-standard" agreement with broader and deeper rules than many other pacts. Its relationship with initiatives like the Indo-Pacific Economic Framework for Prosperity promoted by the United States is a subject of strategic economic discussion. The agreement also interacts with the rules of the World Trade Organization.

Category:Free trade agreements Category:International trade Category:Pacific region