CPTPP

Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement among 11 Pacific Rim countries aimed at reducing trade barriers and promoting economic integration. It evolved from the original TPP after the U.S. withdrew, maintaining many of the same provisions while introducing new elements to facilitate trade and investment among member nations.

5 Must Know Facts For Your Next Test

1. The CPTPP was signed in March 2018 by Canada, Mexico, Japan, Australia, New Zealand, Singapore, Vietnam, Malaysia, Peru, Chile, and Brunei.
2. The agreement covers various sectors, including goods, services, investment, and intellectual property rights.
3. One of the key features of the CPTPP is its commitment to labor rights and environmental standards among member countries.
4. The CPTPP represents approximately 13.4% of the global economy, making it one of the largest trade agreements in the world.
5. By eliminating tariffs on many goods, the CPTPP aims to enhance competitiveness and boost trade flows among member nations.

Review Questions

• What are some of the primary goals of the CPTPP in terms of economic integration and trade enhancement among member countries?
  • The primary goals of the CPTPP include reducing tariffs and other trade barriers to enhance economic integration among member countries. By creating a more open trading environment, the agreement aims to boost trade flows and investment among its members. Additionally, it emphasizes commitments to labor rights and environmental protection, which are essential for sustainable economic growth within the region.
• How does the CPTPP differ from its predecessor TPP in terms of membership and provisions following the U.S. withdrawal?
  • The CPTPP differs from the original TPP primarily in its membership since the United States withdrew from negotiations. The remaining 11 countries restructured the agreement to maintain most of its provisions while adjusting certain aspects to reflect the absence of U.S. participation. This included the removal or suspension of some provisions that were originally aimed at addressing U.S. concerns, allowing for a more inclusive agreement focused on regional trade relations.
• Evaluate the potential economic impact of the CPTPP on non-member countries and how it could influence global trade dynamics.
  • The potential economic impact of the CPTPP on non-member countries can be significant, as it may lead to increased competition for markets that these countries previously dominated. Non-members may find themselves at a disadvantage due to higher tariffs imposed on their goods compared to those from CPTPP members. This dynamic could prompt non-member countries to seek their own trade agreements or reconsider existing policies in order to maintain competitiveness in a rapidly evolving global trade environment influenced by regional agreements like the CPTPP.

Related terms

Free Trade Agreement: A pact between two or more nations to eliminate or reduce trade barriers such as tariffs and quotas.

Trade Liberalization: The process of reducing government restrictions on international trade, allowing for a more open market environment.

Regional Trade Agreement: An agreement between countries in a specific region to facilitate trade and enhance economic cooperation among them.