Comprehensive and Progressive Agreement for Trans-Pacific Partnership

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 economic integration, reduce tariffs, and establish trade rules that enhance collaboration among member nations. This agreement is a revised version of the original Trans-Pacific Partnership (TPP) after the United States withdrew in 2017. The CPTPP plays a significant role in shaping economic relations among China, Japan, and Southeast Asian countries.

5 Must Know Facts For Your Next Test

1. The CPTPP includes 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
2. It covers about 13.4% of the global economy, making it one of the largest trade agreements in history.
3. The agreement establishes comprehensive provisions on labor rights, environmental protections, and digital trade regulations.
4. CPTPP aims to create a more balanced economic environment by reducing tariffs on goods and services among member nations.
5. Japan has been a leading advocate for the CPTPP, viewing it as a way to strengthen its economic position in the face of China's rising influence.

Review Questions

• How does the CPTPP differ from its predecessor, the TPP, and what implications does this have for member countries?
  • The CPTPP is a modified version of the original TPP after the United States withdrew. Key differences include the suspension of certain provisions that were included in the TPP but deemed too controversial. This change allows member countries to proceed with economic integration without U.S. participation, which impacts their trade strategies and relationships with non-member countries.
• Evaluate the potential economic impacts of the CPTPP on member countries, particularly focusing on Japan's role within the agreement.
  • The CPTPP is expected to significantly enhance trade opportunities for member countries by reducing tariffs and encouraging investment. Japan's role as one of the leading economies in the agreement positions it to benefit greatly through increased exports and strengthened ties with other nations. This partnership can help Japan mitigate economic pressures from China by fostering deeper relations with other Pacific Rim economies.
• Discuss how the CPTPP might influence geopolitical dynamics in the Asia-Pacific region and its potential impact on China's influence.
  • The CPTPP could reshape geopolitical dynamics by creating a counterweight to China's growing economic influence in the Asia-Pacific region. As member countries deepen their economic ties through reduced tariffs and shared regulations, they may become less reliant on China for trade. This shift may encourage other nations to reconsider their own economic partnerships and strategies, potentially leading to increased regional cooperation among CPTPP members while isolating China economically.

Related terms

Trans-Pacific Partnership (TPP): A proposed trade agreement aimed at deepening economic ties between member countries across the Asia-Pacific region, which was ultimately abandoned after the U.S. withdrawal.

Free Trade Agreement (FTA): A pact between two or more nations to reduce or eliminate trade barriers, promoting greater trade flows and economic cooperation.

Regional Comprehensive Economic Partnership (RCEP): A free trade agreement involving 15 Asia-Pacific countries aimed at increasing trade and investment while enhancing economic cooperation in the region.