ABOUT CPTPP Agreement
- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.
- U.K. announced to apply for joining CPTPP- a free trade block of AsiaPacific Countries. The CPTPP was signed by the 11 countries on 8 March 2018 in Santiago, Chile.
- CPTPP was formerly known as the Trans-Pacific Partnership (TPP). After U.S. withdrawal from TPP, remaining members renamed it CPTPP.
IMPORTANCE OF CPTPP
- CPTPP features ambitious market access commitments in trade in goods, services, investment, labour mobility and government procurement.
- Removes tariff on an estimated 95% of goods traded between CPTPP members and will provide greater
market access. ABOUT CPTPP Agreement
- Increases predictability and eliminates many barriers encountered at the border, such as quotas and
labour market tests.
- The CPTPP recognises the challenges facing Small and Medium-sized enterprises (SMEs) in establishing export markets, and includes outcomes to help make this task easier in the CPTPP region.
- Facilitates free cross-border data flow and removal of localization requirements.
- Simple, effective, clear and predictable customs procedure to reduces processing times at the border.
- Provides easier Rules of origin (ROO) criteria to importers/exporters
- The U.K. has been a major beneficiary of the rise of digital trade with over 67% of service exports worth 190.3 billion pounds being digitally delivered. ABOUT CPTPP Agreement
BENEFITS IN JOINING CPTPP
- Joining CPTPP will cut tariffs for UK industries, including food and drink and cars, while also creating new opportunities for modern industries like tech and services, ultimately supporting and creating high-value jobs across the U.K.
- Modern digital trade rules that allow data to flow freely between members, remove unnecessary barriers for businesses, and protect commercial source code and encryption.
- Other benefits include: modern digital trade rules that allow data to flow freely between members, remove
unnecessary barriers for businesses, and protect commercial source code and encryption.
- Unlike European Union (EU) membership, joining CPTPP does not require U.K. to cede control over laws, borders, or money. ABOUT CPTPP Agreement