On March 9th, 2018, Minister of Industry and Trade, Vietnam Tran Tuan Anh and 10 Ministers of the Member countries signed the Comprehensive and Progressive Agreement for Trans-Pacific partnership (CPTPP) in the capital Santiago, Chile.
The historic process:
CPTPP, a new generation free-trade agreement, is established to replace TPP after the exception of U.S – the world’s largest economy. To the contrary of this situation, CPTPP still holds the high standards. This agreement will be available in 60 days after being signed by 6 of 11 member countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Speaking after the signing ceremony, The Minister of Foreign Affairs, Chile Heraldo Munoz said: “CPTPP is an unique signal to protest the protectionism and advocating a diversified world, multilateral trade”. It is expected that CPTPP is a crucial document to set up a sample for the commercial transactions in the future.
CPTPP founded in the context of President Donal Trump’s threats to increase taxes on steel and aluminum, which impacts many countries and could create a commercial global war.
CPTPP reduces the tariff between 11 member countries which accounted for 13% of the global economy with GDP hit 10,000 billion USD, if it involved U.S, the rate was 40%.
President Chile Michelle Bachelet addressed: “We are here today can be proud of ending this process and send a meaningful message to the community that opening the market, economic integration and international cooperation are the best tool for creating opportunity and prosperity for the economy”.
U.S moved away from CPTPP and tireless efforts are rewarded:
At this time, CPTPP is the world’s largest commercial agreement. The Washington’s retreat from TPP did not give an end this agreement, with a number of efforts from members, especially Japan, has helped revive the high standard agreements in order to create new standards for global trade.
With the APEC 2017 host country role, Vietnam and Japan made efforts to put everything back in orbit. Following this, the content of CPTPP eliminated some requirements requested by U.S from the round of TPP negotiation, including the rules strengthen intellectual property protection to pharmaceutical products. Many countries and activists believe that this regulation will increase the price of drugs. A final draft of the CPTPP was announced in February 21st in New Zealand.
CPTPP retains the contents of the TPP but for some member countries postponed their obligations. It is expected that CPTPP is comprehensive, balances the interests and has the benefits of the countries too after difficult but constructive negotiations.
ANT Lawyers strives to follow CPTPP and other inter countries agreement to exploit best benefits for the clients.