The Comprehensive and Progressive Agreement (CPTPP) for the Trans-Pacific Partnership in UPSC
0JAGDEEP KUMAR August 08, 2022
The Comprehensive and Progressive Agreement (CPTPP) for the Trans-Pacific Partnership
It is a very ambitious regional free trade agreement concluded between eleven countries of the Pacific Ocean periphery. Its purpose is to establish deep economic ties between member countries, eliminate customs duties and encourage trade for economic growth.
The agreement will also set common standards on environmental protection, labor rights and regulatory framework. A provision has also been made for a neutral tribunal to settle disputes under the agreement
This revised agreement covers eleven countries of the Pacific Ocean,namely Australia, Brunei, Canada, Chile, Japan, Malaysia,Mexico, New Zealand, Peru, Singapore and Vietnam. These countries have a combined population of about 500 million and the economies of these countries represent about 13% of the global GDP.
It will be the world's third largest trading group after the European Union and the North American Free Trade Agreement (NAFTA). This agreement will become effective after 60 days of approval by the legislatures of six of the eleven countries and ratification by these countries.
The original Trans-Pacific Partnership Agreement ran into trouble in January 2017 when newly elected US President Donald Trump withdrew from the deal, calling it unfavorable for American jobs and the manufacturing industry. The TPP agreement was originally aimed at counterbalancing China's growing economic influence in the Pacific. But due to America's exit from this agreement, there is doubt in achieving its objectives of the amended agreement because in the present scenario the countries involved in this agreement will have to redefine their trade relations with the US including China.
The provisions of this agreement have been criticized for the secrecy of it. Experts believe that only big companies will benefit from this agreement and it relatively small economies like Vietnam, Chile, Malaysia,Mexico and Peru.
