In 2019, the first year of CPTPP implementation, members` trade in the CPTPP region declined by 4%, with the exception of Australia (export growth of 0.5%) and Vietnam (growth of 7%) and signatories that had not ratified the agreement, Brunei (growth of 27%) and Peru (growth of 24%) (Figure 1). Vietnam has gained in industrial exports to the CPTPP, especially to Japan. In 2020, exports from all CPTPP members to the bloc declined in the context of Covid-19, although Chile and Vietnam were able to increase their global exports by about 6%, with Vietnam benefiting from global demand for phones, electronic devices and computers.1 On July 19, 2018, Singapore became the third country to ratify the agreement and deposit its instrument of ratification. [24] [25] Canada`s main reservation, however, was a conflict between the percentage of a vehicle that must come from a CPTPP country to be imported duty-free, which was 45% in the original wording of the TPP and 62.5% under NAFTA. Japan, which is a major exporter of auto parts, strongly supports the reduction of requirements. [17] In January 2018, Canada announced that it would sign the CPTPP after receiving binding cultural collateral agreements with all other CPTPP member countries, as well as bilateral agreements with Japan, Malaysia and Australia on non-tariff barriers. The Auto Parts Manufacturers Association of Canada has sharply criticized the increase in the percentages of auto parts that can be imported duty-free, noting that the U.S. is moving in the opposite direction by calling for stricter import standards as part of the ongoing NAFTA renegotiation. [18] Taiwan, which has also sought to join the trade pact, expressed concern about China`s decision to apply.
On 30 December 2018, the agreement between Australia, Canada, Japan, Mexico, New Zealand and Singapore entered into force. Asked to comment on China`s offer, a State Department spokesman said it withdrew from the CPTPP because the U.S. was not a member, but added, “That is, we expect China`s non-market trade practices and China`s use of economic coercion against other countries to be included in China`s assessment as a potential candidate for membership.” However, such optimism may not be in its place. There is a significant gap between the core standards of the CPTPP and China`s existing commitments in other trade agreements. The CPTPP includes chapters on labour and state-owned enterprises that prescribe freedom of association, eliminate all forms of forced labour, and establish disciplines for the business activities of state-owned enterprises; RCEP does not. Both the CPTPP and RCEP contain a chapter on e-commerce, but the commitments made are very different. It`s not just about the digital provisions of the CPTPP going further (for example. B the prohibition of forced disclosure of the source code), but that they be the subject of dispute settlement between the parties and do not invoke self-condemnable exceptions for national security. On September 16, China formally submitted an application for membership in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) trade agreement.
It wasn`t surprising news, but it was still great news. The CPTPP is the survivor of the U.S. withdrawal from the initial Trans-Pacific Partnership (TPP) at the request of former U.S. President Donald Trump. The reconfigured trade grouping maintained ambitious targets of tariff elimination and high standards for trade and investment liberalization. From the beginning, the TPP project expected to welcome new members in order to increase its economic weight and disseminate quality rules for economic integration. Acceptance of existing CPTPP disciplines is required by all potential members. This five-part series aims to provide an early overview of the potential impact of the CPTPP by examining trade and investment flows in the CPTPP region in recent years, examining the views of businesses in the CPTPP region on the agreement and in particular its chapter on e-commerce, and presenting preliminary results on the unique impact of the CPTPP relative to other factors. that have shaped trade and e-commerce trends in the region. like other recent trade deals, trade wars and the Covid-19 crisis.
Much more data and analysis is needed to determine how the CPTPP shapes its members` trade flows; This series attempts to make new assumptions for such future research by examining early models. On 25 October 2018, New Zealand ratified the CPTPP, bringing to four the number of countries that have formally ratified the agreement. [29] On the 28th. In June 2018, Mexico became the first country to complete its national CPTPP ratification process, with President Enrique Peña Nieto declaring: “With this next-generation agreement, Mexico is diversifying its economic relations with the world and demonstrating its commitment to openness and free trade. [20] [21] Liability for transportation costs also includes export charges or taxes charged by the country of origin. However, the risk passes from the seller to the buyer as soon as the goods are delivered to the first carrier, even if several means of transport (e.g. B, land, then air) are used. Therefore, if a truck carrying a shipment to the airport encounters an accident in which the goods are damaged, the seller is not liable for damage if the buyer has not insured the products because the goods have already been handed over to the first carrier. This may expose the buyer to some risk, as the seller is incentivized to find the cheapest means of transport without paying particular attention to the safety of the product during transport. To compensate for this risk, the buyer may consider a paid transport and insurance agreement (CIP) whereby the seller also insures the products in transit. Thanks to its extra-regional partners, China continues its relentless growth as a source of imports for CPTPP members.
This paper examines trade and investment trends in CPTPP members in recent years to examine the potential impact of the agreements, without attributing trends to the CPTPP at this stage. Task 4 of this series attempts to study these causal models. On July 6, 2018, Japan became the second country to ratify the agreement. [22] [23] In 2020, Brunei, Singapore and Vietnam increased purchases from most of their CPTPP counterparts; Chile recorded double-digit growth in imports from Australia, Canada and New Zealand; and Malaysia recorded double-digit growth in imports from Brunei, Canada, New Zealand and Peru. However, these bilateral flows came from a weak base, accounting for only 1% of all CPTPP members` imports from Bloc peers. In the CPTPP`s largest merchandise trade corridor, Singapore`s imports from Malaysia increased by 7%, but the second largest corridor, Japanese imports from Australia, fell by 22%. Imports of industrial goods by most CPTPP members, particularly Japan and Mexico, declined sharply in 2020 amid a sharp decline in CPTPP members` imports from the United States and the European Union and, in most cases, a decline in imports from China. .