Type | Trade agreement |
---|---|
Signed | 8 March 2018 |
Location | Santiago, Chile |
Sealed | 23 January 2018 |
Effective | 30 December 2018 |
Condition | 60 days after ratification by 50% of the signatories, or after six signatories have ratified |
Parties | |
Depositary | Government of New Zealand |
Languages |
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), initially abbreviated as TPP11 or TPP-11, [1] [2] is a trade agreement that evolved from the Trans-Pacific Partnership. [3]
The current twelve members have combined economies representing 14.4 percent of global gross domestic product, at approximately US$15.8 trillion as of 2024, [4] making the CPTPP one of the world's largest free trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European single market, [5] and the Regional Comprehensive Economic Partnership.
The CPTPP evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. [6]
The TPP had been signed on 4 February 2016 but never entered into force, as the U.S. withdrew from the agreement soon after the election of president Donald Trump. [7] All other TPP signatories agreed in May 2017 to revive the agreement, [8] with Shinzo Abe's administration in Japan widely reported as taking the leading role in place of the U.S. [9] [10]
In January 2018, the CPTPP was created as a succeeding agreement, retaining two-thirds of its predecessor's provisions; 22 measures favored by the U.S. but contested by other signatories were suspended, while the threshold for enactment was lowered so as not to require U.S. accession. [11] [12]
The agreement to establish the CPTPP was signed on 8 March 2018 by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, with the ceremony held in Santiago, Chile. [13] [14] The agreement specifies that its provisions enter into effect 60 days after ratification by at least half the signatories (six of the eleven participating countries). [11] On 31 October 2018, Australia was the sixth nation to ratify the agreement; it subsequently came into force for the initial six ratifying countries on 30 December 2018. [15]
During the round of negotiations held concurrently with the Asia-Pacific Economic Cooperation forum in Vietnam in November 2017, the Canadian prime minister Justin Trudeau refused to sign the agreement in principle, stating reservations about the provisions on culture and automotives. Media outlets in Australia, New Zealand, and Japan, which strongly supported quick movement on a deal, strongly criticized what they portrayed as Canadian sabotage. [16]
Canada insisted that cultural and language rights, specifically related to its French-speaking minority, be protected. [17]
However, Canada's major reservation was a conflict between the percentage of a vehicle that must originate in a CPTPP member nation to enter tariff-free, which was 45% under the original TPP language and 62.5% under the NAFTA agreement. Japan, which is a major automobile part exporter, strongly supported lower requirements. [16] In January 2018, Canada announced that it would sign the CPTPP after obtaining binding side letters on culture with every other CPTPP member country, as well as bilateral agreements with Japan, Malaysia, and Australia related to non-tariff barriers. Canada's Auto Parts Manufacturers' Association sharply criticized increasing the percentages of automobile parts that may be imported tariff-free, noting that the United States was moving in the opposite direction by demanding stricter importation standards in the NAFTA renegotiation, later USMCA. [17]
In February 2019, Canada's Jim Carr, Minister of International Trade Diversification, delivered a keynote address at a seminar concerning CPTPP - Expanding Your Business Horizons, reaching out to businesses stating the utilisation of the agreement provides a bridge that will enable people, goods and services to be shared more easily. [18]
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) incorporates most of the provisions of the abandoned Trans-Pacific Partnership (TPP) agreement, using mutatis mutandis . [19] [20] Several clauses within Article 30 of the TPP were suspended for the CPTPP, including:
The final text of CPTPP was mostly identical to the original TPP, except for some provisions advanced by the United States under the TPP, but not supported by the other members. In the intellectual property chapter, copyright and patent terms were shortened relative to TPP, and standards for digital IP protections were eliminated. Provisions allowing use of investor–state dispute settlements for investment agreements and authorizations were also rescinded. [12] In summary, the CPTPP amends aspects of the following TPP chapters:
The chapter on state-owned enterprises (SOEs) requires signatories to share information about SOEs with each other, with the intent of engaging with the issue of state intervention in markets. It includes the most detailed standards for intellectual property of any trade agreement, as well as protections against Intellectual property infringement against corporations operating abroad. [21] [22]
The e-commerce chapter of the CPTPP mandates that signatories adopt or at the very least maintain laws for consumer protection with the aim to fight fraud and deceptive commercial activities. [23]
On 28 June 2018, Mexico became the first country to finish its domestic ratification procedure of the CPTPP, with President Enrique Peña Nieto stating, "With this new generation agreement, Mexico diversifies its economic relations with the world and demonstrates its commitment to openness and free trade". [24] [25]
On 6 July 2018, Japan became the second country to ratify the agreement. [26] [27]
On 19 July 2018, Singapore became the third country to ratify the agreement and deposit its instrument of ratification. [28] [29]
On 17 October 2018, the Australian Federal Parliament passed relevant legislation through the Senate. [30] The official ratification was deposited on 31 October 2018. This two-week gap made Australia the sixth signatory to deposit its ratification of the agreement, and it came into force 60 days later. [31]
On 25 October 2018, New Zealand ratified the CPTPP, increasing the number of countries that had formally ratified the agreement to four. [32]
Also on 25 October 2018, Canada passed and was granted royal assent on the enabling legislation. [33] The official ratification was deposited on 29 October 2018. [34] [35] [36]
On 2 November 2018, the CPTPP and related documents were submitted to the National Assembly of Vietnam for ratification. [37] On 12 November 2018, the National Assembly passed a resolution unanimously ratifying the CPTPP. [38] The Vietnamese government officially notified New Zealand of its ratification on 15 November 2018. [39]
On 14 July 2021, the CPTPP was approved by the Congress of the Republic of Peru. The official ratification was deposited on 21 July 2021. [40]
On 30 September 2022, Malaysia ratified the CPTPP and deposited its instrument of ratification. [41] [42]
On 17 April 2019, the CPTPP was approved by the Chamber of Deputies of Chile. The final round of approval in the Senate was scheduled for November 2019, after being approved by its Commission of Constitution. [43] However, due to a series of massive protests against the government of Sebastián Piñera, the ratification process was paused. Only in 2022, the ratification process was resumed after a new Congress and a new President were elected. Despite the public opposition of Gabriel Boric to the treaty before his election as President, the new administration did not interfere in the voting. The CPTPP was approved in the Senate with 27 votes in favor (mainly from the right-wing opposition and some center-left politicians) and 10 against, mostly by members of the ruling coalition. [44] The treaty was deposited on 23 December, once several side letters were negotiated with the other signatories in specific topics considered harmful by the Chilean government. [45] On 23 February 2023, Boric ratified Chile's entry to TPP-11. [46]
On 13 May 2023, Brunei ratified the CPTPP and deposited its instrument of ratification. [47]
The agreement came into effect 60 days after ratification and deposit of accession documents by at least half the signatories (six of the eleven signatories). [11] Australia was the sixth country to ratify the agreement, which was deposited with New Zealand on 31 October 2018, and consequently the agreement came into force between Australia, Canada, Japan, Mexico, New Zealand, and Singapore on 30 December 2018. [48]
On 1 January 2019, Australia, Canada, Mexico, New Zealand, and Singapore implemented a second round of tariff cuts. Japan's second tariff cut took place on 1 April 2019. [36]
On 15 November 2018, Vietnam deposited the accession documents, and the agreement entered into force in Vietnam on 14 January 2019. [36] [39] [49]
On 21 July 2021, Peru deposited the accession documents, and the agreement entered into force in Peru on 19 September 2021. [40]
On 30 September 2022, Malaysia deposited the accession documents, and the agreement entered into force in Malaysia on 29 November 2022. [50]
On 23 December 2022, Chile deposited the accession documents, and the agreement entered into force in Chile on 21 February 2023. [46]
On 13 May 2023, Brunei deposited the accession documents, and the agreement entered into force in Brunei on 12 July 2023. [51]
An overview of the legislative process in selected states is shown below:
Signatory | Signature [13] | Institution | Conclusion date | AB | Deposited | Effective | Ref. | ||
---|---|---|---|---|---|---|---|---|---|
Mexico | 8 March 2018 | Senate | 24 April 2018 | 73 | 24 | 28 June 2018 | 30 December 2018 | [24] [25] [52] | |
Presidential Assent | 21 May 2018 | Granted | |||||||
Japan | House of Representatives | 18 May 2018 | Majority approval (Standing vote) | 6 July 2018 | [26] [53] [54] | ||||
House of Councillors | 13 June 2018 | 168 | 69 | ||||||
Singapore | No parliamentary approval required | 19 July 2018 | [28] [48] | ||||||
New Zealand | House of Representatives | 24 October 2018 | 111 | 8 | 25 October 2018 | [55] [32] | |||
Royal assent | 25 October 2018 | Granted | |||||||
Canada | House of Commons | 16 October 2018 | 236 | 44 | 1 | 29 October 2018 | [34] [35] [33] [36] | ||
Senate | 25 October 2018 | Majority approval (Voice vote) | |||||||
Royal assent | Granted | ||||||||
Australia | House of Representatives | 19 September 2018 | Majority approval (Standing vote) | 31 October 2018 | [56] [57] [31] [58] [59] | ||||
Senate | 17 October 2018 | 33 | 15 | ||||||
Royal assent | 19 October 2018 | Granted | |||||||
Vietnam | National Assembly | 12 November 2018 | 469 | 0 | 16 | 15 November 2018 | 14 January 2019 | [39] [60] [61] | |
Peru | Congress | 14 July 2021 | 97 | 0 | 9 | 21 July 2021 | 19 September 2021 | [40] [62] | |
Malaysia | Cabinet of Malaysia | 30 September 2022 | 29 November 2022 | [63] [64] [42] [41] | |||||
Chile | Chamber of Deputies | 17 April 2019 | 77 | 68 | 2 | 23 December 2022 | 21 February 2023 | [65] [66] [67] [68] | |
Senate | 11 October 2022 | 27 | 10 | 1 | |||||
Brunei | No parliamentary approval required | 13 May 2023 | 12 July 2023 | [47] [51] |
The following country has signed an accession protocol to accede to CPTPP.
Signatory | Application | Negotiations | Signature | Institution | Passed | AB | Deposited | Effective | Ref. | |||
---|---|---|---|---|---|---|---|---|---|---|---|---|
United Kingdom | 1 February 2021 | Opened | 2 June 2021 | 16 July 2023 | House of Lords | 23 January 2024 | Majority approval (Voice vote) | 16 May 2024 | 8 of 11: 15 December 2024 9 of 11: 24 December 2024 | [69] [70] [71] [72] [73] [74] | ||
Concluded | 31 March 2023 | House of Commons | 19 March 2024 | Majority approval (Voice vote) | ||||||||
Royal assent | 20 March 2024 | Granted |
The CPTPP Commission is the decision-making body of the CPTPP, which was established when the CPTPP entered into force on 30 December 2018. [75] The official languages of CPTPP are English, French, and Spanish; English is used prevailing in the case of conflict or divergence. [76] The CPTPP commission in 2024 is chaired by Canada. [77]
No. | Year | Date | Country | City | Host leader |
---|---|---|---|---|---|
1 | 2019 | 19 January | Japan | Tokyo | Prime Minister Shinzo Abe |
2 | 9 October | New Zealand | Auckland | Prime Minister Jacinda Ardern | |
3 | 2020 | 5 August | Mexico | Virtual meeting | President Andrés Manuel López Obrador |
4 | 2021 | 2 June | Japan | Prime Minister Yoshihide Suga | |
5 | 1 September | Japan | Prime Minister Yoshihide Suga | ||
6 | 2022 | 8 October | Singapore | Prime Minister Lee Hsien Loong | |
7 | 2023 | 16 July | New Zealand | Auckland | Prime Minister Chris Hipkins |
8 | 2024 | 28 November | Canada | Vancouver | Prime Minister Justin Trudeau |
1st CPTPP Commission (2019)
Representatives from the eleven CPTPP signatories participated in the 1st CPTPP Commission meeting held in Tokyo on 19 January 2019, [78] which decided:
2nd CPTPP Commission (2019)
The 2nd CPTPP Commission meeting was held on 9 October 2019 in Auckland, New Zealand. Alongside the commission, the following Committees met for the first time in Auckland: Trade in Goods; Rules of Origin; Agricultural Trade; Technical Barriers to Trade; Sanitary and Phytosanitary Measures; Small and Medium Sized Enterprises; State Owned Enterprises; Development; Cooperation and Capacity Building; Competitiveness and Business Facilitation; Environment; and the Labour Council. The Commission adopted two formal decisions, (i) on its Rules of Procedure under Article 27.4 and (ii) to establish a Roster of Panel Chairs as provided for under Article 28.11. [87] [88]
3rd CPTPP Commission (2020)
The 3rd CPTPP Commission meeting was held virtually and hosted by Mexico on 5 August 2020. [89]
4th CPTPP Commission (2021)
The 4th CPTPP Commission meeting was held virtually and hosted by Japan on 2 June 2021. The Commission decided to move forward with the application of the United Kingdom as an aspirant economy. [90]
5th CPTPP Commission (2021)
The 5th CPTPP Commission meeting was held virtually and hosted by Japan on 1 September 2021. [91] The Commission decided to establish a Committee on Electronic Commerce composed of government representatives of each Party.
6th CPTPP Commission (2022)
The 6th CPTPP Commission meeting was held on 8 October 2022 and hosted by Singapore. [92]
7th CPTPP Commission (2023)
The 7th CPTPP Commission meeting was held on 16 July 2023 in Auckland, New Zealand. The commission decided to establish a Committee on Customs Administration and Trade Facilitation. [93] The meeting included the formal signing of the accession of the United Kingdom. [94]
8th CPTPP Commission (2024)
The 8th CPTPP Commission meeting was held on 28 November 2024 in Vancouver, Canada. [77] The Commission decided to move forward with the application of Costa Rica as an aspirant economy. [95]
In January 2018, the government of the United Kingdom stated that it was exploring membership of the CPTPP to stimulate exports after Brexit and had held informal discussions with several of the members. [96] In October 2018, Japanese Prime Minister Shinzo Abe said he would welcome the United Kingdom joining the partnership post-Brexit. [97] Liz Truss, the UK Secretary of State for Trade, expressed in a joint Daily Telegraph article with Simon Birmingham, David Parker, and Chan Chun Sing, the trade ministers of Australia, New Zealand, and Singapore, the intent of the United Kingdom to join the CPTPP. [98]
On 1 February 2021, the United Kingdom formally applied to join CPTPP. [99] The UK is the first non-founding country to apply to join the CPTPP. If successful, Britain would become the second-largest CPTPP economy, after Japan. [100] Japan had expressed support for the UK's potential entry into CPTPP in 2018, [101] and as 4th CPTPP Commission (2021) chair, Japan's minister in charge of negotiations on the trade pact, Yasutoshi Nishimura, expressed hope on Twitter that Britain will "demonstrate its strong determination to fully comply with high-standard obligations" of the free trade accord, and mentioned that "I believe that the UK's accession request will have a great potential to expand the high-standard rules beyond the Asia-Pacific." [102]
In June 2021, the CPTPP agreed to open accession talks. A working group was established to discuss tariffs and rules governing investment and trade, led by Japan. [103]
By March 2023, the United Kingdom was set to join the CPTPP, as the 11 members had reached an agreement to Britain's accession. [104] [105] [106] The UK government also announced it had secured an extension mechanism, which could extend the whole agreement to any Crown Dependency or British Overseas Territory. [107] On the same day, Guernsey and Jersey confirmed their intentions to participate in CPTPP. [108] [109] In May 2023, a UK government spokesman confirmed that "the deal will cover goods trade between the Crown Dependencies and CPTPP countries, with a mechanism to include trade in services in future." [110]
The United Kingdom formally signed the CPTPP trade deal during the 7th CPTPP Commission - or members ministerial meeting - in New Zealand on 16 July 2023, becoming the first non-original signatory and European country to sign the agreement. [111] [112]
For those countries who ratified the accession protocol before 16 October 2024, the agreement entered into force from 15 December 2024:
The accession protocol will enter into force with the following country from 24 December 2024:
As of December 2024, the following countries are yet to ratify the UK's accession protocol. The agreement will apply to them 60 days after they ratify: [120]
On the 15 December 2024 the United Kingdom formally ascended to the CPTPP and became the twelfth member. [122]
CPTPP rules require all eleven signatories to agree to the admission of additional members. [123] Article 34 of CPTPP states that "any State or separate customs territory that is a member of APEC, and any other State or separate customs territory as the Parties may agree" are eligible accede to the agreement. [124] [125]
Current Status
Country | Status | Application | Negotiations opened | Negotiations concluded | Signature | Accession | Ref. |
---|---|---|---|---|---|---|---|
United Kingdom | Full member as of the 15 December 2024 [126] | 1 February 2021 | 2 June 2021 | 31 March 2023 | 16 July 2023 | 15 December 2024 | [127] [120] |
Costa Rica | Invitation to join received | 11 August 2022 | 29 November 2024 | [128] [129] | |||
China | Formal application submitted | 16 September 2021 | [130] [131] | ||||
Taiwan | Formal application submitted under the name of "The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (TPKM)." | 22 September 2021 | [132] [133] [134] | ||||
Ecuador | Formal application submitted | 29 December 2021 | [135] [104] | ||||
Uruguay | Formal application submitted | 1 December 2022 | [136] [137] | ||||
Ukraine | Formal application submitted | 5 May 2023 | [138] [139] | ||||
Indonesia | Formal application submitted | 19 September 2024 | [140] [141] |
Chinese leaders have made aspirational statements about joining the TPP since 2013. [142] : 177 In May 2020, China's Premier Li Keqiang said that China was willing to consider joining CPTPP. [143] Meanwhile, China's leader Xi Jinping said at an Asia-Pacific Economic Cooperation (APEC) summit in November 2020 that China would "actively consider" joining CPTPP.
In December 2020, Japan Foreign Minister Toshimitsu Motegi has said that "TPP-11 sets high standards for regulations on e-commerce, intellectual property and state-owned enterprises", suggesting the amount of government intervention in the Chinese economy will not meet CPTPP requirements. [144]
China's application to CPTPP is unlikely to gain traction. Although not a member of CPTPP, the U.S. can exercise the "poison pill" within the United States–Mexico–Canada Agreement that prevents Canada and Mexico from voting in favour of the Chinese application. [145]
On 16 September 2021, China formally applied to join CPTPP. [131]
Japan Economy Minister Yasutoshi Nishimura was quoted by Reuters: "Japan believes that it's necessary to determine whether China, which submitted a request to join the TPP-11, is ready to meet its extremely high standards"; indicating that Japan would not support the Chinese application under the current circumstances. [146]
Former Australian Trade Minister Dan Tehan indicated that Australia would oppose China's application until China halts trade strikes against Australian exports and resumes minister-to-minister contacts with the Australian government. Also, Australia has lodged disputes against China in the WTO on restrictions imposed by China on exports of barley and wine. [147]
Costa Rica filed its application to join the CPTPP trade pact on 11 August 2022. [128] [148] Costa Rica was invited to begin accession talks by CPTPP, an Accession Working Group for Costa Rica to be chaired by Peru and vice-chaired by Canada and New Zealand. [129] [149] [95]
Ecuador filed its application to join the CPTPP trade pact on 29 December 2021 as the country moves to reduce its reliance on oil and diversify its economy through exports. [135] [104]
Indonesia initially showed the least interest of three linked ASEAN members to apply to CPTPP, however continued to monitor the developments of the trade bloc, with Indonesian ambassador to the US Rosan Roeslani leaving the door open but clarifying that Indonesia was not in the process of applying to CPTPP at that time. [150] In October 2023, Jakarta Globe reported that the primary reason for Indonesia's lack of interest in CPTPP was due to the government's policy of reducing imported goods in its public procurement in order to develop its domestic industry, which is incompatible with CPTPP requirements for members to eliminate over 98 percent of tariffs in the free trade area. [151] In December 2023, Chief Economic Affairs Minister Airlangga Hartarto heavily discussed CPTPP with British Trade Envoy to Indonesia, Richard Graham; this meeting occurred a few months after the UK signed the accession protocols to join CPTPP. [152] In April 2024, Hartarto conveyed Indonesia's interest in joining CPTPP to British Minister of State for Indo-Pacific Anne-Marie Trevelyan during a meeting in London; Trevelyan emphasised that the UK supported Indonesia's bids to join the OECD and CPTPP. [153] On 3 June 2024, Hartarto announced that Indonesia would apply to join CPTPP in 2024, as it would be a faster method to gain access to new markets, highlighting the UK and Mexico, than negotiating individual bilateral agreements. [154] Indonesia filed its application to join the CPTPP trade pact on 19 September 2024. [140]
Taiwan applied to join CPTPP on 22 September 2021. [155]
It had previously expressed interest to join TPP in 2016. [156] After TPP's evolution to CPTPP in 2018, Taiwan indicated its will to continue efforts to join CPTPP. [157] In December 2020, the Taiwanese government stated that it would submit an application to join CPTPP following the conclusion of informal consultations with existing members. [158] In February 2021 again, Taiwan indicated its will to apply to join CPTPP at an appropriate time. [159] A few days after China submitted its request to join the CPTPP, Taiwan sent its own request to join the CPTPP, a move that has been one of the main policy objectives of Tsai Ing-wen's government. [160]
On 1 May 2023, the Ukrainian government announced its intention for the accession of Ukraine to CPTPP. [161] Ukraine aims to accelerate its efforts to restore its economy severely damaged by the Russian invasion. [162] Canadian Trade Minister Mary Ng expressed support for Ukraine's application. [163] Ukraine submitted a formal request to join the trade bloc on 5 May 2023. [138] [139]
Uruguay filed its application to join the CPTPP trade pact on 1 December 2022. [136] Uruguay's application received backlash from Argentina, Brazil, and Paraguay, of which make up the Mercosur trade bloc, particularly following President Lacelle Pou opening negotiations for a free trade agreement with China and signalling his willingness to cut deals with other countries. Paraguay's Foreign Minister Julio Arriola responded by stating that "Mercosur member states should negotiate as a bloc and via consensus and we continue in that line,” citing the organization's founding treaties. [164]
Several countries have expressed interest in joining CPTPP since the revisions from TPP, including Colombia, Philippines, South Korea, and Thailand. [165]
The Philippines' interest in the CPTPP has remained, but the consultative process and legal analysis of the terms necessary for accession have been drawn out. [150] The Philippines previously wanted to join the TPP in 2016 under Benigno Aquino, who said that the country stood to gain from becoming a member of the trade pact. [166] Philippine Ambassador to the U.S. Jose Manuel Romualdez later clarified that the US withdrawal from TPP pushed the Philippines' application to CPTPP down the agenda, yet China's interest in acceding to CPTPP has made the trade bloc more attractive for the Philippines. [150] In July 2024, Trade Undersecretary Allan Gepty announced that the Philippines would apply for membership of CPTPP by the end of the year. [167]
In January 2021, South Korea's Moon administration announced it would seek to join CPTPP. [168] The country will examine sanitary and phytosanitary measures, fisheries subsidies, digital trade and guidelines related to state-run enterprises to meet the requirements that CPTPP has suggested. [169] The South Korean government formally announced it will begin its application to join CPTPP in December 2021. [170]
In November 2021, a Thai government official stated that Thailand aimed to join talks on membership of CPTPP, which had been viewed as a method to boost the Thai economy, additionally it would increase the competitivity of Thai goods against rivals, notably Malaysia and Vietnam, in sectors such as agricultural and electronic industries. [171] Foreign Minister Don Pramudwinai was expected to submit a letter of intent for the country to apply to join the pact to the cabinet for its approval. [172] A campaign against joining the pact called "#NoCPTPP" which has gathered 400,000 signatures has demanded the prime minister to not consider joining the pact. [173] Thailand has remained interested in joining CPTPP as part of its free trade agreement strategy to expand its trade and investment opportunities with various partners around the world, however has not submitted a formal application. [174]
On 25 January 2018, U.S. President Donald Trump in an interview announced his interest in possibly rejoining the TPP if it were a "substantially better deal" for the United States. He had withdrawn the U.S. from the original agreement in January 2017. [175] On 12 April 2018, he told the White House National Economic Council Director Larry Kudlow and U.S. Trade Representative Robert Lighthizer to look into joining CPTPP. [176] U.S. Wheat Associates President Vince Peterson had said in December 2018 that American wheat exporters could face an "imminent collapse" in their 53% market share in Japan due to exclusion from CPTPP. Peterson added, "Our competitors in Australia and Canada will now benefit from those [CPTPP] provisions, as U.S. farmers watch helplessly." The National Cattlemen's Beef Association stated that exports of beef to Japan, America's largest export market, would be at a serious disadvantage to Australian exporters, whose tariffs on exports to Japan would be cut by 27.5% during the first year of CPTPP. [177] [178]
In December 2020, a bipartisan group of U.S. policy experts, Richard L. Armitage and Joseph S. Nye Jr., called for Washington to join the CPTPP, [179] [180] but this call was rejected by Secretary of Commerce Gina Raimondo when meeting Japanese government leaders on 15 November 2021. Raimondo stated that the Biden administration would not be joining CPTPP but instead planned to create a new trade framework as an alternative to CPTPP in the Indo-Pacific region. [181]
Economist José Gabriel Palma has criticized the treaty for severely restricting the sovereignty of the signatories. [182] Signatories are subject to international courts and have restrictions on what their state-owned enterprises can do. [183] According to Palma the treaty makes it difficult for countries to implement policies aimed to diversify exports thus becoming a so-called middle income trap. [182] Palma also accuses that the treaty is reinforcing unequal relations by being drafted to reflect the laws of the United States. [183]
In the case of Chile, Palma holds the treaty is redundant regarding the possibilities of trade as Chile already has trade treaties with ten of its members. [183] On the contrary, economist Klaus Schmidt–Hebbel consider that the CPTPP "deepening" of already existing trade relations of Chile is a point in favour of it. [184] In the view of Schmidt-Hebbel approving the treaty is important for the post-Covid economic recovery of Chile and wholly in line with the economic policies of Chile since the 1990s. [184]
In mid November 2021 the Waitangi Tribunal, a standing commission of inquiry established in 1975 to investigate the New Zealand Crown's breaches of the Treaty of Waitangi, found that the Crown had failed to meet its Treaty obligations to protect Māori interests as part of the CPTPP but acknowledged that several major changes occurred in the negotiation process. [185] While the Tribunal was satisfied that the Crown's engagement with Māori over the CPTPP and secrecy had been resolved through negotiation, it ruled there were significant risks to Māori in the e-commerce provisions of the CPTPP and data sovereignty. [186] Following an earlier 2016 Tribunal ruling, a Māori advisory committee called Te Taumata had been established while a second body known as Ngā Toki Whakarururanga was established as a result of the mediation agreement. [185]
The Trans-Pacific Partnership (TPP), or Trans-Pacific Partnership Agreement (TPPA), was a proposed trade agreement between 12 Pacific Rim economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United States. In the United States, the proposal was signed on 4 February 2016 but not ratified as a result of significant domestic political opposition. After taking office, the newly elected President Donald Trump formally withdrew the United States from TPP in January 2017, therefore ensuring the TPP could not be ratified as required and did not enter into force. The remaining countries negotiated a new trade agreement called Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which incorporated most of the provisions of the TPP and which entered into force on 30 December 2018.
Economic Partnership Agreements (EPAs) are a scheme to create a free trade area (FTA) between the European Union and other countries. They are a response to continuing criticism that the non-reciprocal and discriminating preferential trade agreements offered by the EU are incompatible with WTO rules. The EPAs date back to the signing of the Cotonou Agreement. The EPAs with the different regions are at different states of play. The EU has signed EPAs with the following countries: the Southern African Development Community (SADC), ECOWAS, six countries in Eastern and Southern Africa, Cameroon, four Pacific states, and the CARIFORUM states. Their defining characteristic is that they open up exports to the EU immediately, while exports to the partner regions is opened up only partially and over transitioning periods.
New Zealand is party to 14 free trade agreements (FTAs) worldwide. Together they accounted for over 70% of New Zealand's trade in 2023.
New Zealand–United Kingdom relations are the bilateral relations between New Zealand and the United Kingdom. New Zealand has maintained a close relationship with Britain, since gaining independence from the United Kingdom.
The Trans-Pacific Strategic Economic Partnership Agreement (TPSEP), also known as P4, is a trade agreement between four Pacific Rim countries concerning a variety of matters of economic policy. The agreement was signed by Brunei, Chile, Singapore and New Zealand in 2005 and entered into force in 2006. It is a comprehensive trade agreement, affecting trade in goods, rules of origin, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, trade in services, intellectual property, government procurement and competition policy. Among other things, it called for reduction by 90 percent of all tariffs between member countries by 1 January 2006, and reduction of all trade tariffs to zero by the year 2015.
Singapore–United Kingdom relations, also referred to as British–Singaporean relations, refers to the bilateral relations between the Republic of Singapore and the United Kingdom of Great Britain and Northern Ireland. Both countries are full members of the Commonwealth of Nations and are marked by historical, cultural, institutional and language ties, extensive people-to-people links, aligned security interests, sporting tournaments, and significant trade and investment co-operation.
The free trade agreements of Canada represents Canada's cooperation in multinational trade pacts and plays a large role in the Canadian economy. Canada is regularly described as a trading nation, considering its total trade is worth more than two-thirds of its GDP. Of that total trade, roughly 75% is done with countries that are part of free trade agreements with Canada—primarily the United States through the Canada–United States–Mexico Agreement (CUSMA), and its predecessor the North American Free Trade Agreement (NAFTA). By the end of 2014, Canada's bilateral trade hit Can$1 trillion for the first time. Canada is a signatory to 15 free trade agreements with 51 countries.
The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific countries of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.
The Nation of Brunei, the Abode of Peace and the United Kingdom of Great Britain and Northern Ireland have formal diplomatic relations. Brunei has a High Commission in London, and United Kingdom has a High Commission in Bandar Seri Begawan. Both countries are members of the Commonwealth and share history and have a friendly and strong relationship, dating back to the 19th century - which includes very strong friendships between both countries' monarchs and royal families.
The negotiations for the Trans-Pacific Partnership Agreement were held between 12 countries between 2008 and 2015. The negotiations were aimed at obtaining an agreement between the Trans-Pacific Strategic Economic Partnership Agreement parties Brunei, Chile, Singapore and New Zealand, as well as the Australia and the United States.
Following its withdrawal from the European Union on 31 January 2020, the United Kingdom began negotiations on several free trade agreements to remove or reduce tariff and non-tariff barriers to trade, both to establish new agreements and to replace previous EU trade agreements. Withdrawal ended 47 years of membership during which all its trading agreements were negotiated by the European Commission on behalf of the bloc. The UK did not actually withdraw from the European Single Market and the European Union Customs Union until 31 December 2020.
The United Kingdom–United States Free Trade Agreement (UKUSFTA) is a proposed free trade agreement between the United Kingdom and the United States.
South Korea has concluded free trade agreements (FTAs) and other agreements with a trade component with countries around the world and is negotiating with others.
The Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative launched by U.S. President Joe Biden on May 23, 2022. The framework launched with fourteen participating founding member nations in the Indo-Pacific region with an open invitation for other countries to join.
Vietnam, although a relatively young and small nation, has successfully established trade relations with dozens of countries worldwide. This is especially evident in the number of free trade agreements (FTAs) that the country has signed and is participating in. Being part of the Association of Southeast Asian Nations (ASEAN), economic opportunities for Vietnam expands beyond bilateral trade agreements, with specific countries in order to include multilateral trade agreements via the ASEAN Free Trade Area (AFTA).
The accession of the United Kingdom to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been on the current agenda for the enlargement of the CPTPP since 2 June 2021, when the CPTPP Commission decided to move forward with the application of the United Kingdom as an aspirant economy. The United Kingdom officially applied for CPTPP membership on 1 February 2021. Accession negotiations between the UK and the 11 current CPTPP members negotiations were concluded on 31 March 2023. The UK formally signed the accession protocol on 16 July 2023. The UK and at least 6 of the 11 existing member nations will need to ratify the accession protocol before it takes effect. The UK Government expected the entry into force to take place in the second half of 2024. On 29 August 2024, the UK government announced the agreement is expected to enter into force on 15 December 2024, after securing the final ratification required for membership.
The New Zealand–United Kingdom free trade agreement (NZUKFTA) was signed on 28 February 2022. The broad terms of the agreement were concluded on 20 October 2021. It was the second trade agreement signed by Britain since leaving the European Union that was negotiated completely anew.
United Kingdom–Vietnam relations refer to the bilateral relations between the United Kingdom of Great Britain and Northern Ireland and the Socialist Republic of Vietnam. They established diplomatic relations on 11 September 1973, 3 years prior to Vietnamese reunification.
New Zealand's Ministry of Foreign Affairs and Trade has confirmed it has received a formal request from the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu