The Pacific Trade Agreement, also known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), is a trade agreement that was signed by 11 countries in March 2018. The agreement has been hailed as a landmark deal that will create a free trade area covering economies that account for approximately 13.5% of global GDP.
The CPTPP was originally conceived as the Trans-Pacific Partnership (TPP), but the United States pulled out of the negotiations shortly after President Trump took office in 2017. Despite this setback, the remaining countries continued to work towards a revised agreement that would still create a significant trading bloc in the Pacific.
The countries that have signed the CPTPP are Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement is expected to go into effect in December 2018.
One of the key aims of the CPTPP is to lower trade barriers and promote economic integration between the participating countries. This includes reducing tariffs on goods and services, improving intellectual property regulations, and establishing new rules for labor and environmental standards.
The agreement has been praised by many as a way to boost economic growth and create new opportunities for businesses and consumers across the Pacific region. However, there are also concerns about the potential impact of the CPTPP on workers and the environment in some of the participating countries.
In particular, there are concerns that the CPTPP could lead to an increase in outsourcing and job losses in some industries, particularly in countries with lower labor standards. There are also concerns about the impact of the agreement on the environment, particularly in countries with weak environmental regulations.
Despite these concerns, the CPTPP is widely seen as a significant step forward for global trade and economic integration. As the world becomes increasingly interconnected, agreements like the CPTPP will become increasingly important for promoting economic growth and ensuring that the benefits of trade are shared more widely.