Trans-Pacific Strategic Economic Partnership Agreement

Last updated
Trans-Pacific Strategic Economic Partnership Agreement
TPSEP-4 Countries.png
parties to the trade agreement
TypeTrade agreement
Drafted3 June 2005 [1]
Signed18 July 2005 [2] [3] [4]
Location Wellington, New Zealand
Effective28 May 2006 [5]
Condition2 ratifications
Parties
Depositary Government of New Zealand [3]
LanguagesEnglish and Spanish, in event of conflict English prevails [3]

The Trans-Pacific Strategic Economic Partnership Agreement (TPSEP), also known as P4, [6] 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. [7]

Contents

Earlier agreements

By 2001, New Zealand and Singapore had concluded the Agreement between New Zealand and Singapore on a Closer Economic Partnership (NZSCEP). The Trans-Pacific Strategic Economic Partnership Agreement built on the NZSCEP. [8] :5

Negotiations

During the 2002 Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting in Los Cabos, Mexico, Prime Ministers Helen Clark of New Zealand, Goh Chok Tong of Singapore and Chilean President Ricardo Lagos began negotiations on the Pacific Three Closer Economic Partnership (P3-CEP). [8] :5 According to the New Zealand Department of Foreign Affairs and Trade, [8] :5

"The shared desire was to create a comprehensive, forward-looking trade agreement that set high-quality benchmarks on trade rules, and would help to promote trade liberalisation and facilitate trade within the APEC region."

Ministry of Foreign Affairs and Trade, New Zealand 2005

Brunei first took part as a full negotiating party in April 2005 before the fifth, and final round of talks. [9] Subsequently, the agreement was renamed to TPSEP (Trans-Pacific Strategic Economic Partnership agreement or Pacific-4). Negotiations on the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) were concluded by Brunei, Chile, New Zealand and Singapore on 3 June 2005, [1] and entered into force on 28 May 2006 for New Zealand and Singapore, 12 July 2006 for Brunei, and 8 November 2006 for Chile. [10]

Parties

PartySignature [3] Entry into force [3] Population
Flag of Brunei.svg  Brunei 2 August 200529 July 2009417,200 (175th 2015 estimate) [11]
Flag of Chile.svg  Chile 18 July 20058 November 200618,006,407 (62nd 2015 estimate) [12]
Flag of New Zealand.svg  New Zealand 18 July 20051 May 20065,268,520 (123rd 2017 estimate) [13]
Flag of Singapore.svg  Singapore 18 July 20051 May 20065,607,300 (113th 2016 estimate) [14]

Although the TPSEP agreement contains an accession clause and affirms the members' "commitment to encourage the accession to this Agreement by other economies", no such accession have taken place. [9] [15] All four countries were involved however in the negotiations for the Trans-Pacific Partnership Agreement, about which agreement was reached in 2015 involving eight additional parties.

The TPSEP (and the TPP it grew into) are not APEC initiatives. However, the TPP is considered to be a pathfinder for the proposed Free Trade Area of the Asia Pacific (FTAAP), an APEC initiative.

See also

Related Research Articles

Brunei joined ASEAN on 7 January 1984, one week after resuming full independence, and gives its ASEAN membership the highest priority in its foreign relations. Brunei joined the United Nations in September 1984. It is also a member of the Organisation of Islamic Cooperation (OIC), the Asia-Pacific Economic Cooperation (APEC) forum and the Commonwealth of Nations. Brunei hosted the APEC Economic Leaders' Meeting in November 2000. In 2005 it attended the inaugural East Asia Summit.

<span class="mw-page-title-main">Foreign relations of Singapore</span> Overview of the foreign relations of Singapore

Singapore maintains diplomatic relations with 189 UN member states. The three exceptions are the Central African Republic, Monaco and South Sudan.

<span class="mw-page-title-main">Asia-Pacific Economic Cooperation</span> Economic forum of Asia-Pacific nations

Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of ASEAN's series of post-ministerial conferences launched in the mid-1980s, APEC started in 1989, in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; it aimed to establish new markets for agricultural products and raw materials beyond Europe. Headquartered in Singapore, APEC is recognized as one of the highest-level multilateral blocs and oldest forums in the Asia-Pacific region, and exerts significant global influence.

<span class="mw-page-title-main">ASEAN Free Trade Area</span> Free trade area of the Association of South East Asian Nations

The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies. It stands as one of the largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive Economic Partnership.

<span class="mw-page-title-main">Closer Economic Relations</span> Australia–New Zealand free trade agreement

The Australia–New Zealand Closer Economic Relations Trade Agreement, commonly known as Closer Economic Relations (CER), is a free trade agreement between the governments of New Zealand and Australia. It came into force on 1 January 1983, but the actual treaty was not signed until 28 March 1983 by the Deputy Prime Minister of Australia and Minister for Trade, Lionel Bowen and the New Zealand High Commissioner to Australia, Laurie Francis in Canberra, Australia. This was because Malcolm Fraser and Robert Muldoon hated each other personally to such an extent that they refused to ratify the agreement if the other was there.

<span class="mw-page-title-main">Trans-Pacific Partnership</span> 2016 proposed trade agreement

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, being opposed by many Democrats and Republicans, including both major-party presidential nominees, Donald Trump and Hillary Clinton. After taking office, the newly elected President Donald Trump formally withdrew the United States from TPP in January 2017, therefore 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 incorporates most of the provisions of the TPP and which entered into force on 30 December 2018.

The East Asia Economic Caucus (EAEC) or East Asia Economic Group (EAEG) was a regional free trade zone (FTA) proposed in 1997 by Malaysian Prime Minister Mahathir Mohamad and encompasses most nations of East and Southeast Asia (ESEA). However, Japan at the time refused participation due to the exclusion of the United States, which at the time had tariffs on each other, has an economy too deeply interlinked through trade, and was still reeling from the effects of the Japanese asset price bubble. They also added that they were already members of the Asia-Pacific Economic Cooperation (APEC) and many other notable regional organizations in ESEA. South Korea was also extremely dissatisfied with the idea of placing Japan at the center of the proposed organization due to historical connotations.

The Pacific Economic Cooperation Council (PECC) is a network of member committees composed of individuals and institutions dedicated to promoting cooperation across the Asia Pacific region, headquartered in Singapore. PECC has 23 full member committees Australia; Brunei Darussalam; Canada; Chile; China; Colombia; Ecuador; Hong Kong; Indonesia; Japan; Korea; Malaysia; Mexico; Mongolia; New Zealand; Peru; the Philippines; Singapore; Taiwan; Thailand; the United States; Vietnam and the Pacific Islands Forum, one associate member: France, and 2 institutional members: Pacific Trade and Development Conference (PAFTAD) and the Pacific Basin Economic Council (PBEC).

<span class="mw-page-title-main">New Zealand–United States relations</span> Bilateral relations

According to the U.S. State Department, relations between New Zealand and the United States as of August 2011 are "the best they have been in decades." New Zealand is a major non-NATO ally of the United States.

<span class="mw-page-title-main">Economic Research Institute for ASEAN and East Asia</span>

The Economic Research Institute for ASEAN and East Asia or ERIA is an international organization established in Jakarta, Indonesia in 2008 by a formal agreement among Leaders of 16 countries in the East Asian region to conduct research activities and make policy recommendations for further economic integration in the East Asia. ERIA works very closely with both the ASEAN Secretariat and 16 Research Institutes to undertake and disseminate policy research under the three pillars, namely “Deepening Economic Integration”, ”Narrowing Development Gaps”, and “Sustainable Development” and provide analytical policy recommendations to Leaders and Ministers at their regional meetings. ERIA provides intellectual contributions to East Asian Community building and serves as a Sherpa international organization. ERIA Ranks 9th among the world's "Top International Economics Think Tanks" according to the 2020 Global Go To Think Tanks Index Report conducted by the University of Pennsylvania.

<span class="mw-page-title-main">Free trade agreements of New Zealand</span>

New Zealand is party to several free trade agreements (FTAs) worldwide.

<span class="mw-page-title-main">Regional Comprehensive Economic Partnership</span> 2020 Asia-Pacific free trade agreement

The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific nations 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 Hong Kong – New Zealand Closer Economic Partnership Agreement is a bilateral free trade agreement signed between the Hong Kong Special Administrative Region of China and New Zealand in March 2010. It is the first bilateral free trade agreement on goods and services that Hong Kong SAR has signed with a foreign country. Hong Kong-New Zealand CEPA complements New Zealand's Free Trade Agreement (FTA) with China two years before, and enhances the potential for Hong Kong to be used as a platform for trade into the Mainland China. Hong Kong is a Special Administrative Region of China but has autonomy in matters of trade.

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.

The Anti-TPPARally or Perhimpunan Aman Bantah TPPA (Malay) is a rally that was held in Kuala Lumpur, Malaysia on January 23, 2016. The rally was organised by a coalition of non-governmental organisations, Bantah TPPA and Kongres Rakyat, and supported by various non-governmental organisations. The rally was held in response to the Malaysian government's signing of the Trans-Pacific Partnership Agreement in which twelve countries, namely Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore, United States, Vietnam and including Malaysia concluded the trade negotiations in Atlanta on October 5, 2015. Opponents of the agreement argued that although TPPA could increase Malaysia's Gross Domestic Product (GDP), it was at the people's expense as it does not take into account issues faced by the people. The rally saw participants march from various points in Kuala Lumpur to their eventual destination, Dataran Merdeka.

<span class="mw-page-title-main">Chile–New Zealand relations</span> Bilateral relations between Chile and New Zealand

Chile–New Zealand relations are the diplomatic relations between the Republic of Chile and New Zealand. Both nations are mutual members of the Asia-Pacific Economic Cooperation, Cairns Group, OECD and the United Nations.

<span class="mw-page-title-main">APEC Mexico 2002</span>

APEC Mexico 2002 was a series of political meetings held around Mexico between the 21 member economies of the Asia-Pacific Economic Cooperation during 2002. Leaders from all member countries met from 26–27 October 2002 in Los Cabos. Counter-terrorism efforts were major topics on the agenda of APEC Mexico 2002. The APEC summit attempted to present a new opportunity for Asian investors and commercial agents to discover Mexico as a profitable frontier in the future.

<span class="mw-page-title-main">Comprehensive and Progressive Agreement for Trans-Pacific Partnership</span> Multilateral free trade agreement

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. The eleven members have combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, 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, and the Regional Comprehensive Economic Partnership. The United Kingdom formally signed the trade agreement on 16 July 2023 and will join the agreement when it has been ratified by all parties, or after 15 months if the UK and a majority of CPTPP parties have ratified it before it takes effect.

<span class="mw-page-title-main">Lim Jock Hoi</span> Bruneian politician

Lim Jock Hoi, also referred to as Dato Jock Hoi, is a Bruneian politician and diplomat who served as the 14th secretary-general of ASEAN between 2018 and 2022. He previously served as the permanent secretary of the Ministry of Foreign Affairs and Trade, Brunei.

References

  1. 1 2 "Brunei Darussalam, Chile, New Zealand and Singapore conclude negotiations on a Trans-Pacific Strategic Economic Partnership Agreement" (Press release). Joint Press Statement from Brunei Darussalam, Chile, New Zealand and Singapore Ministers. 3 June 2005. Archived from the original on 7 September 2006. Retrieved 15 December 2012. Brunei Darussalam Ambassador-at-Large Princess Masna, Chilean Minister of Foreign Affairs Mr Ignacio Walker, New Zealand Minister for Trade Negotiations Hon Jim Sutton, and Singapore Minister for Trade and Industry Mr Lim Hng Kiang today announced the successful conclusion of negotiations for a Trans-Pacific Strategic Economic Partnership Agreement (Trans-Pacific SEP).... The Ministers will recommend the results of the negotiations to their respective governments for signature.
  2. "Second free trade agreement to be signed by NZ this year" (Press release). New Zealand Government. 18 July 2005. Archived from the original on 5 May 2015. Retrieved 7 October 2015. The first multi-party free trade agreement spanning the Pacific and Asia was signed today in a ceremony at Parliament, announced Prime Minister Helen Clark.
  3. 1 2 3 4 5 "Treaties for which NZ is Depositary: Trans-Pacific Strategic Economic Partnership (TPSEP or P4)". Archived from the original on 9 February 2013. Retrieved 15 December 2012.
  4. "FTA signed: NZ, Chile, Singapore and Brunei to end tariffs". The National Business Review. 19 July 2005. Archived from the original on 14 March 2016. Retrieved 15 December 2012.
  5. "Trans-Pacific Strategic Economic Partnership Agreement: Understanding the P4 – The original P4 agreement". Archived from the original on 10 February 2013. Retrieved 15 December 2012. The agreement provisionally entered into force (between New Zealand and Singapore only) on 1 May and officially entered into force on 28 May. The Agreement entered into force for Brunei on 12 July 2006, and for Chile on 8 November 2006.
  6. "SICE: Trade Policy Developments: Trans Pacific Partnership Agreement". www.sice.oas.org. Retrieved 2021-08-19.
  7. "Trans-Pacific Strategic Economic Partnership Agreement" (PDF). NZ Ministry of Foreign Affairs & Trade. 2005. Archived from the original (PDF) on 14 May 2015. Retrieved 28 January 2012.
  8. 1 2 3 "Trans-Pacific Strategic Economic Partnership Agreement national interest analysis" (PDF), Ministry of Foreign Affairs and Trade (New Zealand) , July 2005, ISBN   978-0-477-03793-8 , retrieved 5 August 2015
  9. 1 2 "History of the Trans-Pacific SEP Agreement P4". mfat.govt.nz. Archived from the original on 2013-02-10.
  10. "Trans-Pacific Strategic Economic Partnership Agreement: Understanding the P4 – The original P4 agreement". Archived from the original on 10 February 2013. Retrieved 15 December 2012.
  11. "National Statistics". depd.gov.bn. Archived from the original on 11 November 2016. Retrieved 1 July 2015.
  12. "CIFRAS DE ENVEJECIMIENTO Y MIGRACIÓN MUESTRAN UN CHILE DISTINTO AL DE HACE UN DECENIO". POBLACIÓN PAÍS Y REGIONES – ACTUALIZACIÓN 2002–2012. National Statistics Institute. 4 September 2014. Retrieved 4 September 2014.
  13. "Population clock". Statistics New Zealand. Retrieved 14 April 2016. The population estimate shown is automatically calculated daily at 00:00 UTC and is based on data obtained from the population clock on the date shown in the citation.
  14. "Population & Land Area (Mid-Year Estimates)". Statistics Singapore. June 2014. Archived from the original on 6 September 2015. Retrieved 25 September 2014.
  15. "TRANS-PACIFIC STRATEGIC ECONOMIC PARTNERSHIP AGREEMENT" (PDF). mfat.govt.nz. Archived from the original (PDF) on 14 May 2015. Retrieved 5 October 2015.