Comprehensive and Progressive Agreement for Trans-Pacific Partnership

TPP & CPTPP

 

Agreement PDF  TPP & CPTPP

Source: MITI 

The Trans-Pacific Partnership Agreement (TPPA) is a trade agreement between 12 Pacific Rim nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam signed on 4 February in Auckland, New Zealand.

The condition for entry into force of the Agreement requires ratification by at least 6 parties accounting for 85% of the combined GDP of the 12 TPP members. The United States President Donald Trump signed an Executive Order to withdraw from the TPPA on 23 January 2017. Without US participation, the Agreement cannot enter into force. The US accounts for 60% of the combined GDP of the 12 TPP members.

Snapshot: TPPA Market
TPP GDP: US$28 trillion
TPP Population: 800 million
TPP % of world GDP: 37.5%
TPP % of world population: 11.4%
TPP % of world trade: 25.7%

 



Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

In light of the US withdrawal, the TPP Ministers from the remaining 11 member countries convened a meeting on 21 May 2017 on the sideline of the APEC MRT Meeting in Hanoi, Vietnam and affirmed the economic and strategic importance of TPPA, particularly as a vehicle for regional economic integration. Negotiators from the 11 countries met over several rounds to find ways to implement the TPPA.

On 9-10 November 2017 in Da Nang, Viet Nam, Ministers of the 11 TPP countries reached an agreement on the core elements, the text of the agreement and way forward to implement the TPPA, which was renamed as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).

The CPTPP was signed by all 11 participating countries - Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam - on 8 March 2018 in Santiago, Chile. Signing is an indication that the 11 countries accept the outcome of the negotiations and will start their domestic process to enable their ratification of the Agreement in order to bring the Agreement into force.

 

Entry into Force of the CPTPP / Implementation of the CPTPP

Date(s) of entry into Force:

  • 30 December 2018 for Australia, Canada, Japan, Mexico, New Zealand, and Singapore
  • 14 January 2019 for Viet Nam
  • 19 September 2021 for Peru
  • 29 November 2022 for Malaysia
  • 21 February 2023 for Chile



Snapshot: CPTPP Market

CPTPP Population: 514 million (6.6% of world population)
CPTPP GDP: US$11.7 trillion (12.2% of world GDP)
CPTPP Total Trade: US$6.6 trillion (14.7% of total world trade)
CPTPP Exports: US$3.4 trillion (15.2% of world exports)
CPTPP Imports: US$3.2 trillion (14.3% of world imports)

 

The Text of the CPTPP

The CPTPP is a separate treaty that incorporates, by reference, the provisions of the original Trans-Pacific Partnership Agreement (TPPA). Under the CPTPP, signatories will implement the original TPPA between them, with the exception of a limited number of provisions which will be suspended. The CPTPP text should be read in conjunction with the text of the original TPPA.

A suspended provision is a provision in the original TPP Agreement which will not have effect under CPTPP. Twenty-two items from the original TPPA will be suspended under CPTPP. These suspensions will remain in place until the Parties, by consensus, agree to lift them.

It is important to note that the schedules and annexes specific to the United States as well as any reference to the United States that may appear throughout the Chapters of the original TPPA, will have no practical application as the United States is not part of the CPTPP.