Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11,[1][2][3] is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It evolved from the Trans-Pacific Partnership (TPP), which was never ratified due to the withdrawal of the United States. The eleven members have combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, making the CPTPP one of the world's largest free trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European single market,[4] and the Regional Comprehensive Economic Partnership. The United Kingdom and the present members formally signed an accession protocol on 16 July 2023, and will join the agreement when it has been ratified by all parties, or after 15 months if the UK and a majority of CPTPP parties have ratified it.[5][6]
For the agreement it superseded, see Trans-Pacific Partnership.Type
8 March 2018
23 January 2018
30 December 2018
60 days after ratification by 50% of the signatories, or after six signatories have ratified
The TPP had been signed on 4 February 2016 but never entered into force, as the U.S. withdrew from the agreement soon after the election of president Donald Trump.[7] All other TPP signatories agreed in May 2017 to revive the agreement,[8][9] with Shinzo Abe's administration in Japan widely reported as taking the leading role in place of the U.S.[10][11] In January 2018, the CPTPP was created as a succeeding agreement, retaining two-thirds of its predecessor's provisions; 22 measures favored by the U.S. but contested by other signatories were suspended, while the threshold for enactment was lowered so as not to require U.S. accession.[12][13]
The formal signing ceremony was held on 8 March 2018 in Santiago, Chile.[14][15] The agreement specifies that its provisions enter into effect 60 days after ratification by at least half the signatories (six of the eleven participating countries).[12] On 31 October 2018, Australia was the sixth nation to ratify the agreement; it subsequently came into force for the initial six ratifying countries on 30 December 2018.[16]
The chapter on state-owned enterprises (SOEs) requires signatories to share information about SOEs with each other, with the intent of engaging with the issue of state intervention in markets. It includes the most detailed standards for intellectual property of any trade agreement, as well as protections against intellectual property theft against corporations operating abroad.[13]
Negotiations[edit]
During the round of negotiations held concurrently with the Asia-Pacific Economic Cooperation forum in Vietnam in November 2017, the Canadian prime minister Justin Trudeau refused to sign the agreement in principle, stating reservations about the provisions on culture and automotives. Media outlets in Australia, New Zealand, and Japan, which strongly supported quick movement on a deal, strongly criticized what they portrayed as Canadian sabotage.[17]
Canada insisted that cultural and language rights, specifically related to its French-speaking minority, be protected.[18]
However, Canada's major reservation was a conflict between the percentage of a vehicle that must originate in a CPTPP member nation to enter tariff-free, which was 45% under the original TPP language and 62.5% under the NAFTA agreement. Japan, which is a major automobile part exporter, strongly supported lower requirements.[17] In January 2018, Canada announced that it would sign the CPTPP after obtaining binding side letters on culture with every other CPTPP member country, as well as bilateral agreements with Japan, Malaysia, and Australia related to non-tariff barriers. Canada's Auto Parts Manufacturers' Association sharply criticized increasing the percentages of automobile parts that may be imported tariff-free, noting that the United States was moving in the opposite direction by demanding stricter importation standards in the NAFTA renegotiation, later USMCA.[18]
In February 2019, Canada's Jim Carr, Minister of International Trade Diversification, delivered a keynote address at a seminar concerning CPTPP - Expanding Your Business Horizons, reaching out to businesses stating the utilisation of the agreement provides a bridge that will enable people, goods and services to be shared more easily.[19]
The final text of CPTPP was mostly identical to the original TPP, except for some provisions advanced by the US under the TPP, but not supported by the other members. In the intellectual property chapter, copyright and patent terms were shortened relative to TPP, and standards for digital IP protections were eliminated. Provisions allowing use of investor–state dispute settlements for investment agreements and authorizations were also rescinded.[13]
Legislative process[edit]
Ratifications[edit]
On 28 June 2018, Mexico became the first country to finish its domestic ratification procedure of the CPTPP, with President Enrique Peña Nieto stating, "With this new generation agreement, Mexico diversifies its economic relations with the world and demonstrates its commitment to openness and free trade".[20][21]
On 6 July 2018, Japan became the second country to ratify the agreement.[22][23]
On 19 July 2018, Singapore became the third country to ratify the agreement and deposit its instrument of ratification.[24][25]
On 17 October 2018, the Australian Federal Parliament passed relevant legislation through the Senate.[26] The official ratification was deposited on 31 October 2018. This two-week gap made Australia the sixth signatory to deposit its ratification of the agreement, and it came into force 60 days later.[27]
On 25 October 2018, New Zealand ratified the CPTPP, increasing the number of countries that had formally ratified the agreement to four.[28]
Also on 25 October 2018, Canada passed and was granted royal assent on the enabling legislation.[29] The official ratification was deposited on 29 October 2018.[30][31][32]
On 2 November 2018, the CPTPP and related documents were submitted to the National Assembly of Vietnam for ratification.[33] On 12 November 2018, the National Assembly passed a resolution unanimously ratifying the CPTPP.[34] The Vietnamese government officially notified New Zealand of its ratification on 15 November 2018.[35]
On 14 July 2021, the CPTPP was approved by the Congress of the Republic of Peru. The official ratification was deposited on 21 July 2021.[36]
On 30 September 2022, Malaysia ratified the CPTPP and deposited its instrument of ratification.[37][38]
On 17 April 2019, the CPTPP was approved by the Chamber of Deputies of Chile. The final round of approval in the Senate was scheduled for November 2019, after being approved by its Commission of Constitution.[39] However, due to a series of massive protests against the government of Sebastián Piñera, the ratification process was paused. Only in 2022, the ratification process was resumed after a new Congress and a new President were elected. Despite the public opposition of Gabriel Boric to the treaty before his election as President, the new administration did not interfere in the voting. The CPTPP was approved in the Senate with 27 votes in favor (mainly from the right-wing opposition and some center-left politicians) and 10 against, mostly by members of the ruling coalition.[40] The treaty was deposited on 23 December, once several side letters were negotiated with the other signatories in specific topics considered harmful by the Chilean government.[41] On 23 February 2023, Boric ratified Chile's entry to TPP-11.[42]
On 13 May 2023, Brunei ratified the CPTPP and deposited its instrument of ratification.[43]
On 16 July 2023, the United Kingdom became the first non-original signatory and European country to sign the CPTPP agreement. The UK formally signed the accession protocol on 16 July 2023.[6] The UK ratified the terms of its accession on the 17 May 2024.[44] Additionally all current CPTPP members must ratify the UK's application.[45]
Entry into force[edit]
The agreement came into effect 60 days after ratification and deposit of accession documents by at least half the signatories (six of the eleven signatories).[12] Australia was the sixth country to ratify the agreement, which was deposited with New Zealand on 31 October 2018, and consequently the agreement came into force between Australia, Canada, Japan, Mexico, New Zealand, and Singapore on 30 December 2018.[16]
On 1 January 2019, Australia, Canada, Mexico, New Zealand, and Singapore implemented a second round of tariff cuts. Japan's second tariff cut took place on 1 April 2019.[32]
On 15 November 2018, Vietnam deposited the accession documents, and the agreement entered into force in Vietnam on 14 January 2019.[32][35][46]
On 21 July 2021, Peru deposited the accession documents, and the agreement entered into force in Peru on 19 September 2021.[36]
On 30 September 2022, Malaysia deposited the accession documents, and the agreement entered into force in Malaysia on 29 November 2022.[47]
On 23 December 2022, Chile deposited the accession documents, and the agreement entered into force in Chile on 21 February 2023.[42]
On 13 May 2023, Brunei deposited the accession documents, and the agreement entered into force in Brunei on 12 July 2023.[48]
Summary[edit]
An overview of the legislative process in selected states is shown below:
The following country has signed an accession protocol to accede to CPTPP.
The CPTPP Commission is the decision-making body of the CPTPP, which was established when the CPTPP entered into force on 30 December 2018.[69]
The official languages of CPTPP are English, French, and Spanish; English is used prevailing in the case of conflict or divergence.[70] The CPTPP commission in 2024 is chaired by Canada.[71]
1st CPTPP Commission (2019)
Representatives from the eleven CPTPP signatories participated in the 1st CPTPP Commission meeting held in Tokyo on 19 January 2019,[72] which decided:
2nd CPTPP Commission (2019)
The 2nd CPTPP Commission meeting was held on 9 October 2019 in Auckland, New Zealand. Alongside the commission, the following Committees met for the first time in Auckland: Trade in Goods; Rules of Origin; Agricultural Trade; Technical Barriers to Trade; Sanitary and Phytosanitary Measures; Small and Medium Sized Enterprises; State Owned Enterprises; Development; Cooperation and Capacity Building; Competitiveness and Business Facilitation; Environment; and the Labour Council. The Commission adopted two formal decisions, (i) on its Rules of Procedure under Article 27.4 and (ii) to establish a Roster of Panel Chairs as provided for under Article 28.11.[82][83]
3rd CPTPP Commission (2020)
The 3rd CPTPP Commission meeting was held virtually and hosted by Mexico on 5 August 2020.[84]
4th CPTPP Commission (2021)
The 4th CPTPP Commission meeting was held virtually and hosted by Japan on 2 June 2021.[85] The Commission decided to move forward with the application of the United Kingdom as an aspirant economy.
5th CPTPP Commission (2021)
The 5th CPTPP Commission meeting was held virtually and hosted by Japan on 1 September 2021.[86] The Commission decided to establish a Committee on Electronic Commerce composed of government representatives of each Party.
6th CPTPP Commission (2022)
The 6th CPTPP Commission meeting was held on 8 October 2022 and hosted by Singapore.[87]
7th CPTPP Commission (2023)
The 7th CPTPP Commission meeting was held on 16 July 2023 in New Zealand.[88][89] The commission decided to establish a Committee on Customs Administration and Trade Facilitation.[90] The meeting included the formal signing of the accession of the United Kingdom.[91]
8th CPTPP Commission (2024)
The 8th CPTPP Commission meeting is scheduled to be held in 2024, hosted by Canada.[92]
Responses[edit]
Economist José Gabriel Palma has criticized the treaty for severely restricting the sovereignty of the signatories.[168] Signatories are subject to international courts and have restrictions on what their state-owned enterprises can do.[169] According to Palma the treaty makes it difficult for countries to implement policies aimed to diversify exports thus becoming a so-called middle income trap.[168] Palma also accuses that the treaty is reinforcing unequal relations by being drafted to reflect the laws of the United States.[169]
In the case of Chile, Palma holds the treaty is redundant regarding the possibilities of trade as Chile already has trade treaties with ten of its members.[169] On the contrary, economist Klaus Schmidt–Hebbel consider that the CPTPP "deepening" of already existing trade relations of Chile is a point in favour of it.[170] In the view of Schmidt-Hebbel approving the treaty is important for the post-Covid economic recovery of Chile and wholly in line with the economic policies of Chile since the 1990s.[170]
Before renaming to CPTPP, there are also concerns regarding intellectual property-related terms, as they will likely drop the Antragsdelikt requirements on defining copyright violations, which could affect several fanart communities like Pixiv or Deviantart.[171] In 2016, Prime Minister Shinzo Abe said that Doujinshis will be safe even TPP came into force.[172]
In mid November 2021 the Waitangi Tribunal,[173] a standing commission of inquiry established in 1975 to investigate the New Zealand Crown's breaches of the Treaty of Waitangi,[174] found that the Crown had failed to meet its Treaty obligations to protect Māori interests as part of the CPTPP but acknowledged that several major changes occurred in the negotiation process. While the Tribunal was satisfied that the Crown's engagement with Māori over the CPTPP and secrecy had been resolved through negotiation, it ruled there were significant risks to Māori in the e-commerce provisions of the CPTPP and data sovereignty. Following an earlier 2016 Tribunal ruling, a Māori advisory committee called Te Taumata had been established while a second body known as Ngā Toki Whakarururanga was established as a result of the mediation agreement.[173]