The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has 11 member nations and was signed in 2018. While the agreement has entered into force for 7 members, it is still awaiting approval in Peru. The CPTPP aims to liberalize trade between members by abolishing over 95% of tariffs. However, it is difficult to fully evaluate the economic impacts due to its short time in effect and the COVID-19 pandemic disrupting global trade. Interest from other countries in joining, like the UK, shows the agreement's influence in promoting open markets in the Asia-Pacific region.

1. Perspectives on Comprehensive and
Progressive Agreement for Trans-
Pacific Partnership
Carlos Aquino Rodriguez
Director, Center for Asian Studies,
Universidad Nacional Mayor de San Marcos
E-mail: caquinor@unmsm.edu.pe

2. Outline
• Where are we today on the CPTPP?
• Have we started seeing positive impact arising from this trading pact?
• Are there plans for new members?

3. Where are we today on the CPTPP?
• The Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) has as members nations Australia, Brunei Darussalam,
Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and
Viet Nam
• It was signed in 8 March 2018
• Actually, of the 11 members of the CPTPP, the agreement is in force for 7 of
them. For Australia, Canada, Japan, Mexico, New Zealand, and Singapore
from december 30, 2018, and for Vietnam, from january 14, 2020.
• In the case of Peru, on june 11 this year the Ministry of Foreign Affairs of
Peru sent to the Congress the documents for the approval of the CPTPP.

4. The CPTPP pact was signed in Santiago, Chile, in March 2018. (Photo by Naoyuki Toyama)
Source: NAR: https://asia.nikkei.com/Economy/Trade/UK-formally-applies-for-TPP-Are-Thailand-South-Korea-and-China-next

5. Have we started seeing positive impact arising from this
trading pact?
• The CPTPP covers 13% of global GDP and 15% of global trade.
• The also called TPP-11 is the most advanced trade regional agreement
with its extensive liberalization in tariffs, e-commerce and investment
as hallmarks. Some 95% or more of tariffs are to ultimately be
abolished in trade among members.
• For 6 of them it entered into effect two years ago, for one just one
year ago.
• What have been achieved?

6. World Band: Globa Economic Prospects
June 2021

7. CPTPP has commitments that are broader and deeper and than traditional FTAs
Source: CPTPP, Policy innovations and Impacts, http://aei.pitt.edu/102526/1/MT_Comprehensive_and_Progressive_Trans-Pacific_Partnership.pdf

8. • It is not easy to evaluate the impact of CPTPP on trade and growth for
its members because of the short time it has been in effect to only
some of them
• Also the COVID-19 pandemic was an unexpected event causing much
disruption in the world trade and economy.
• One of the biggest achievements is that CPTPP has raised interest in
other countries to join it.
• Also it could be said that the signing of TPP 11 accelerated the signing
of the RCEP on 15 november 2020

9. Source: APSU: APEC Regional Trend Analysis, may 2021

10. CPTTP Members merchandise exports annual growth in %
Own elaboration
Source; Trade Map:
https://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1%7c1
*Data for Vietnam year 2020 is from World Bank: https://data.worldbank.org/indicator/TX.VAL.MRCH.CD.WT?view=chart

11. Source: World Trade Organization PRESS/876, 31 march 2021

12. https://www.facebook.com/worldtradeorganization/photos/a.385421524833992/4040547872654654

13. https://www.facebook.com/worldtradeorganization/photos/a.385421524833992/4060303377345770

14. • As we saw by 2018 and 2019 already the world economy and trade
growth were slowing down, and in 2020 both experienced negative
growth.
• Asia and CPTPP countries were more resilient to the slowdown.
• But what is needed is that this effort of trade and investment
liberalization in the world, of which the CPTPP is the standard bearer,
is mainteined
• Also we need that some countries members of the TPP11, especially
in Latin America, get more involved in the global value chains trade
networks.

15. World Bank: An Investment Perspective on Global Value Chains, 2021

16. Are there plans for new members?
• On 2 june 2021 the accession process began for the United Kingdom
to join the CPTPP
• As said in the statement by the CPTPP members welcoming UK entry
negotiations “provides an opportunity to advance the CPTPP´s high-
standard rules for the 21st century and further promote free trade,
open and competitive markets and economic integration in the Asia-
Pacific región and beyond”.
• Besides the UK, others like South Korea, Taiwan, Thailand, Philippines,
and even China, have expressed interest in joining the group.

17. • And, will United States join it?
• The question is not to loosen TPP11 requirements in favor of other
countries inclusion.
• CPTPP should be at the forefront in the efforts to achieve trade and
investment liberalization in the world.
• An open system of trade and investment allowed east asian countries
to prosper.

18. • Alert: https://calchamberalert.com/2021/07/02/key-tool-to-speed-
approval-of-trade-pacts-expired-july-1/
• Bertelsmann Stiftung: CPTPP: Policy innovations and Impacts
http://aei.pitt.edu/102526/1/MT_Comprehensive_and_Progressive_
Trans-Pacific_Partnership.pdf