Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement between several Pacific Rim countries that aims to promote economic integration, reduce tariffs, and enhance trade relations. The agreement builds on the original Trans-Pacific Partnership (TPP) but was revised after the United States withdrew in 2017, retaining many of its features while incorporating new commitments among the remaining members.

5 Must Know Facts For Your Next Test

1. The CPTPP includes eleven member countries, including Canada, Australia, Japan, and Mexico, representing a significant portion of the global economy.
2. One of the key features of the CPTPP is the elimination of tariffs on goods traded among member nations, which fosters increased trade and investment opportunities.
3. The agreement also covers a wide range of areas beyond tariffs, including intellectual property, labor rights, environmental protections, and e-commerce.
4. The CPTPP is seen as a strategic response to growing economic tensions in the Asia-Pacific region, particularly in relation to China's rising influence.
5. By enhancing economic cooperation among member countries, the CPTPP aims to create a more integrated regional economy that can compete effectively in the global market.

Review Questions

• How does the CPTPP aim to promote economic integration among its member countries?
  • The CPTPP promotes economic integration by reducing tariffs on goods traded between member countries, which encourages increased trade flows and investment. It also establishes common rules and standards across various sectors such as labor rights and environmental protection. By creating a cohesive framework for trade relations, the agreement facilitates smoother commerce and fosters closer economic ties among member nations.
• What are some significant differences between the CPTPP and its predecessor, the TPP?
  • The main difference between the CPTPP and the TPP lies in the fact that the CPTPP was revised after the United States withdrew from the TPP in 2017. The CPTPP retained most of the original provisions of the TPP but made some adjustments to accommodate the absence of U.S. participation. Additionally, certain provisions were suspended or modified in the CPTPP to make it more acceptable for remaining members while still aiming to achieve economic integration.
• Evaluate the potential impact of the CPTPP on global trade dynamics, particularly concerning China's role in the Asia-Pacific region.
  • The CPTPP is expected to significantly influence global trade dynamics by enhancing cooperation among its member countries while presenting an alternative model to China's expanding economic influence in the Asia-Pacific region. As member nations work together to strengthen their economies through reduced tariffs and common standards, this collective action may lead to greater market access for these countries while limiting China's dominance. The agreement could serve as a platform for promoting free trade principles and countering protectionist measures, ultimately reshaping economic relationships within Asia and beyond.

Related terms

Trans-Pacific Partnership (TPP): A trade agreement that was initially negotiated among twelve Pacific Rim countries, aimed at promoting trade and economic growth before the U.S. withdrawal.

Tariff: A tax imposed on imported goods and services, designed to protect domestic industries by making foreign products more expensive.

Trade Liberalization: The process of reducing or eliminating trade barriers such as tariffs and quotas to encourage free trade among nations.