TPP resurrection ‘a boon to trade’

with generous terms of access, he noted that it may well attract additional members.

Lippoldt highlighted that the CPTPP could also position its members in Asia to benefit from parallel trade liberalisation efforts underway across the continent.

“These parallel initiatives could help businesses in CPTPP countries to gain further economies of scale, facilitating connections with additional trade partners and helping businesses boost productivity.”

On Nov 11, 11 Pacific Basin countries announced an agreement in principle for a Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

CPTPP member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Lippoldt said the CPTPP is a high standards agreement that will liberalise trade in goods (for example, removing most tariffs), services and trade-related investment. It also provides support for labour standards and the environment, intellectual property rights, and the handling of customs issues.

However, 20 sensitive provisions affecting handling of express shipments, investor rights (for example, on dispute resolution with states), and intellectual property rights will be suspended. By suspending rather than deleting these provisions, the CPTPP members hope to facilitate a possible return of the US at some point.

Meanwhile, four further CPTPP areas remain to be addressed, namely state-owned enterprises, coal, trade sanctions, and cultural exceptions.

The CPTPP members hope to finalise and sign the accord next year and it will enter into force once six countries have ratified it.