Final version of CPTPP pact released; to be signed in March

22 Feb '18

2 min read

Courtesy: Ministry of Trade and Industry, Singapore

The final version of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) aimed at cutting trade barriers in 11 Asia-Pacific nations was released recently, indicating that the pact would be reached even after US withdrawal. More than 20 clauses have been suspended or changed. The agreement will be signed on March 8 in Santiago.

President Donald Trump withdrew from the original 12-member Trans-Pacific Partnership (TPP) deal early last year to prioritize protecting US jobs.

The CPTPP negotiations concluded on 23 January 2018. The countries scheduled to sign the agreement are Australia, Brunei Darussalam, Canada, Chile, Japan, Mexico, Malaysia, New Zealand, Peru, Singapore and Vietnam.

The deal is expected to reduce tariffs in economies that jointly comprise more than 13 per cent of the global gross domestic product (GDP) — around $10 trillion, according to a news agency report.

Rules related to intellectual property protection, especially of pharmaceuticals, included earlier as per Washington’s wish, have been altered or suspended as many felt that would raise medicine costs.

"CPTPP has become more important because of the growing threats to the effective operation of the World Trade Organisation rules," New Zealand Trade Minister David Parker said in a statement. The agreement will create new opportunities for international trade, including preferential access for the first time to Japan, Canada, Mexico and Peru, he said.

Parker said the deal would likely come into force at the end of 2018 or the first half of 2019 and an analysis suggests it could be worth up to $4 billion a year to the New Zealand economy once fully implemented. (DS)

Fibre2Fashion News Desk – India