The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, has been making headlines since it was signed on March 8, 2018. The agreement has been hailed as a major step forward for international trade, as it represents the largest trade deal ever signed by Canada, Japan, Mexico, and eight other countries.
The CPTPP is a successor to the Trans-Pacific Partnership (TPP), which was originally signed in 2016 but was abandoned by the United States in 2017. The CPTPP includes many of the same provisions as the original TPP, such as lower tariffs and increased investment opportunities, but without the United States as a member.
So far, the CPTPP has been ratified by seven of its 11 member countries: Australia, Canada, Japan, Mexico, New Zealand, Singapore, and Vietnam. The agreement is currently being considered by the remaining four members: Brunei, Chile, Malaysia, and Peru.
One of the key benefits of the CPTPP is that it creates a level playing field for businesses across member countries. By reducing tariffs and removing barriers to trade, the agreement makes it easier for companies to do business in multiple countries. This is particularly important for small and medium-sized enterprises, which can struggle to navigate the complexities of international trade.
The CPTPP also includes provisions to protect intellectual property, ensure fair competition, and promote sustainable development. These provisions help to ensure that trade is conducted in a transparent and ethical manner, which is good for both businesses and consumers.
Critics of the CPTPP argue that it could lead to job losses and lower wages in some countries, as businesses move production to countries with lower labor costs. However, supporters of the agreement argue that it will create new job opportunities and boost economic growth by increasing trade between member countries.
Overall, the CPTPP is a significant development in international trade, and it has the potential to benefit businesses and consumers across its member countries. As the remaining members continue to consider ratification, we can expect to see more discussion of the agreement and its potential impact on the global economy.