CPTPP

Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between 11 countries in the Asia-Pacific region that aims to promote trade, economic integration, and cooperation among its members. The CPTPP was created as a successor to the Trans-Pacific Partnership (TPP) after the United States withdrew, and it seeks to eliminate tariffs, enhance market access, and set high-standard trade rules.

5 Must Know Facts For Your Next Test

1. The CPTPP includes member countries such as Canada, Australia, Japan, and Mexico, covering approximately 13.4% of the global economy.
2. One of the main goals of the CPTPP is to eliminate 95% of tariffs on goods traded between member countries.
3. The agreement contains provisions on labor rights, environmental protection, and intellectual property, setting high standards for trade practices.
4. CPTPP members have the opportunity to expand their markets and strengthen economic ties with other signatories, fostering greater regional integration.
5. The agreement has been seen as a strategic counterbalance to China's influence in the Asia-Pacific region by enhancing collaboration among its member nations.

Review Questions

• How does the CPTPP address issues of trade barriers among its member countries?
  • The CPTPP aims to reduce trade barriers by eliminating tariffs on a vast majority of goods traded among its member countries. By doing so, it enhances market access and promotes free trade within the region. The agreement's provisions also address non-tariff barriers and encourage regulatory cooperation, making it easier for companies to conduct business across borders.
• Discuss the implications of the CPTPP on labor rights and environmental standards among member nations.
  • The CPTPP includes specific commitments to uphold labor rights and protect the environment, reflecting the importance of sustainable development in trade agreements. Member countries are required to adhere to standards concerning workers' rights and environmental protection. This not only ensures fair treatment of workers but also promotes responsible environmental practices within participating economies.
• Evaluate the strategic significance of the CPTPP in the context of global trade dynamics and its potential impact on non-member countries.
  • The CPTPP holds strategic significance as it positions its member countries in a collaborative framework that enhances their economic influence in global trade. By establishing high-standard rules and promoting trade liberalization among its members, it serves as a model for future agreements. Non-member countries may feel pressured to engage in similar agreements or adapt their own trade practices to remain competitive in the increasingly interconnected global market shaped by the CPTPP.

Related terms

Tariffs: Taxes imposed on imported goods and services designed to protect domestic industries by making foreign products more expensive.

Free Trade Agreement (FTA): A treaty between two or more countries that reduces or eliminates trade barriers, such as tariffs and quotas, to promote international trade.

Trade Liberalization: The process of reducing restrictions on international trade, including tariffs and non-tariff barriers, to encourage free trade among nations.