The Trans-Pacific Partnership Agreement (TPPA) is a trade agreement between 12 Pacific Rim nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam signed on 4 February in Auckland, New Zealand.
The condition for entry into force of the Agreement requires ratification by at least 6 parties accounting for 85% of the combined GDP of the 12 TPP members. The United States President Donald Trump signed an Executive Order to withdraw from the TPPA on 23 January 2017. Without US participation, the Agreement cannot enter into force. The US accounts for 60% of the combined GDP of the 12 TPP members.
Snapshot: TPPA Market
TPP GDP: US$28 trillion
TPP Population: 800 million
TPP % of world GDP: 37.5%
TPP % of world population: 11.4%
TPP % of world trade: 25.7%
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
In light of the US withdrawal, the TPP Ministers from the remaining 11 member countries convened a meeting on 21 May 2017 on the sideline of the APEC MRT Meeting in Hanoi, Vietnam and affirmed the economic and strategic importance of TPPA, particularly as a vehicle for regional economic integration. Negotiators from the 11 countries met over several rounds to find ways to implement the TPPA.
On 9-10 November 2017 in Da Nang, Viet Nam, Ministers of the 11 TPP countries reached an agreement on the core elements, the text of the agreement and way forward to implement the TPPA, which was renamed as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).
The CPTPP was signed by all 11 participating countries – Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam – on 8 March 2018 in Santiago, Chile. Signing is an indication that the 11 countries accept the outcome of the negotiations and will start their domestic process to enable their ratification of the Agreement in order to bring the Agreement into force.
Snapshot: CPTPP Market
A market of 500 million people, and combined GDP of US$10 trillion
CPTPP GDP: US$10.2 trillion
CPTPP Population: 495 million
CPTPP % of world GDP: 13.5%
CPTPP % of world population: 6.8%
CPTPP % of world trade: 15.3%
The CPTPP will enter into force 60 days after six (6) signatories, or at least 50% of the signatories, have ratified the Agreement. It will only become legally binding on the remaining signatories 60 days after they ratify.
CPTPP has been concluded which come into effect from 30 December, 2018 after Australia became the sixth and final nation to complete its ratification on 31st October, 2018.
For more information on Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
please visit MITI’s website via this link: http://fta.miti.gov.my/index.php/pages/view/71?mid=40