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

Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between 11 countries in the Asia-Pacific region aimed at promoting economic integration and reducing trade barriers. This agreement emerged from the original Trans-Pacific Partnership (TPP) after the United States withdrew, preserving key components while adding progressive elements such as labor rights and environmental protections, making it significant in the context of modern trade agreements.

5 Must Know Facts For Your Next Test

1. The CPTPP includes member countries like Canada, Australia, Japan, Mexico, and Vietnam, representing around 13.4% of the global economy.
2. It was signed on March 8, 2018, in Santiago, Chile, after several rounds of negotiations among the remaining countries post-U.S. withdrawal.
3. The agreement incorporates commitments on labor rights, environmental sustainability, and innovation, reflecting a more progressive approach compared to traditional trade agreements.
4. CPTPP provisions cover a wide range of areas including tariffs, intellectual property rights, digital trade, and state-owned enterprises.
5. By reducing tariffs and setting common standards, the CPTPP aims to enhance trade flows among its member countries while fostering economic growth and stability in the region.

Review Questions

• What are the main goals of the CPTPP, and how do they reflect modern trade concerns?
  • The CPTPP aims to enhance economic integration among its member countries by reducing trade barriers and promoting fair competition. Key goals include fostering sustainable economic growth, improving labor rights, and ensuring environmental protections. These objectives reflect a shift in modern trade agreements towards addressing not just economic factors but also social and environmental issues that are increasingly relevant in today's globalized economy.
• Discuss how the CPTPP differs from the original TPP in terms of its approach to labor and environmental standards.
  • The CPTPP retains many provisions of the original TPP but is distinguished by its incorporation of specific commitments to labor rights and environmental protections. While TPP aimed for broad liberalization with minimal constraints on member nations' domestic policies, the CPTPP includes detailed obligations that encourage adherence to international labor standards and promote sustainable practices. This progressive shift highlights an increasing recognition of social responsibility within trade agreements.
• Evaluate the potential economic impacts of the CPTPP on its member countries and how this might influence global trade dynamics.
  • The CPTPP is expected to significantly enhance trade among its member countries by lowering tariffs and harmonizing regulations, which could lead to increased exports and imports. This economic boost may strengthen ties within the Asia-Pacific region and position member countries as leaders in setting high-standard trade rules. As a result, the CPTPP could influence global trade dynamics by establishing a framework that other nations might seek to emulate or challenge, particularly in response to rising protectionism elsewhere.

Related terms

Trans-Pacific Partnership (TPP): A proposed trade agreement originally negotiated among 12 countries that aimed to deepen economic ties and enhance trade and investment in the Asia-Pacific region before being abandoned by the United States.

Free Trade Agreement (FTA): A pact between two or more countries to reduce or eliminate trade barriers on goods and services, facilitating easier access to each other's markets.

Regional Comprehensive Economic Partnership (RCEP): A free trade agreement between 15 Asia-Pacific countries that aims to establish a comprehensive trading framework to enhance economic cooperation and integration in the region.