Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Definition

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement among 11 countries that aims to enhance economic integration, reduce trade barriers, and promote sustainable growth across the Asia-Pacific region. This agreement emerged from the original Trans-Pacific Partnership (TPP) after the United States withdrew, maintaining many of the original provisions while introducing new commitments related to non-tariff barriers, labor rights, and environmental standards.

5 Must Know Facts For Your Next Test

1. The CPTPP includes Australia, Canada, Japan, Mexico, New Zealand, and several other countries, representing about 13.4% of the global economy.
2. One of the key features of the CPTPP is its focus on reducing non-tariff barriers to trade, which can significantly impact market access and competition among member countries.
3. The agreement incorporates provisions that require member countries to adopt measures that promote labor rights and environmental sustainability.
4. Through the CPTPP, member countries aim to enhance cooperation on regulatory practices, making it easier for businesses to comply with standards across different markets.
5. The CPTPP is seen as a strategic move for member countries to strengthen their economic ties in response to changing global trade dynamics and the rise of protectionist policies.

Review Questions

• How does the CPTPP address non-tariff barriers among its member countries?
  • The CPTPP specifically targets non-tariff barriers by promoting transparency and regulatory coherence among member countries. By encouraging the adoption of best practices in regulations, the agreement seeks to minimize unnecessary obstacles to trade. This focus on reducing non-tariff barriers helps facilitate smoother market access and enhances competition among businesses within the member countries.
• Discuss how labor rights and environmental sustainability are integrated into the CPTPP framework.
  • Labor rights and environmental sustainability are crucial components of the CPTPP framework. The agreement includes commitments that require member countries to uphold labor standards, protect workers' rights, and ensure safe working conditions. Additionally, it emphasizes sustainable development by promoting environmental protections and requiring adherence to international environmental agreements. These elements aim to balance economic growth with social responsibility and ecological preservation.
• Evaluate the potential impacts of the CPTPP on global trade dynamics in light of rising protectionism.
  • The CPTPP has significant potential to reshape global trade dynamics as it represents a collective effort among member nations to foster open markets in a climate where protectionist tendencies are on the rise. By creating a robust trading bloc that prioritizes free trade principles, the agreement may encourage other countries to reconsider their trade policies in favor of greater cooperation. This shift could lead to increased competition, innovation, and market accessibility while potentially countering isolationist trends in various economies around the world.

Related terms

Non-Tariff Barriers: Regulatory restrictions or policies other than tariffs that countries use to control the amount of trade across their borders, including quotas, import licensing systems, and standards for products.

Free Trade Agreement:

A pact between two or more countries to reduce or eliminate trade barriers, such as tariffs and quotas, promoting increased trade and economic cooperation.

Sustainable Development: Economic development that is conducted without depletion of natural resources, promoting social equity and environmental protection as integral parts of economic growth.