PT POINTERS

THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP

(CPTPP)
THE CONTEXT: Recently, the United Kingdom has agreed to join an 11-member trans-Pacific
trade pact to deepen ties in the region and build its global trade links after leaving the
European Union.
THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP
(CPTPP)
About:
 CPTPP is a free trade agreement (FTA) that was agreed in 2018 between 11 countries
– Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
Singapore and Vietnam. The U.K will become the 12th member and the first country
to join the partnership since its inception.
 It is the successor to the Trans-Pacific Partnership (TPP), which was a key plank in the
Obama administration’s “Pivot to Asia” strategy that aimed to create an economic
counterweight to China’s regional influence. It emerged after the former US
president Donald Trump withdrew the country from the TPP in 2017, soon after
taking office.
 Also, it is important to note that, In September 2021, China submitted a formal
application to join the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP). But for the entry, there must be a consensus among all 11
members.
 The CPTPP Commission is currently chaired by New Zealand.
Objectives:
 The agreement mandates the duty-free entry of commercial samples having almost
negligible value and printed advertising material from the territory of a signatory
party.
 CPTPP covers virtually all sectors and aspects of trade in order to eliminate or reduce
barriers. It establishes clear rules that help create a consistent, transparent and fair
environment to do business in CPTPP markets.
 It eliminates tariffs and reduces barriers for 98% of exports to CPTPP member
countries.
 It also includes trade-related technical cooperation among CPTPP members,
including with respect to small and medium-sized enterprises, regulatory coherence
and economic development.
Significance:
 The Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP) will offer exporters a competitive advantage over exporters from other
countries that do not have a free trade agreement with countries in the Asia-Pacific
region.
 Once fully implemented, CPTPP will form a trading bloc representing 500 million
consumers and 13.5% of global GDP, providing preferential access to key markets in
Asia and Latin America.