What is CPTPP? Know everything about the pact that has got China, Britain interested

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 Pacific rim nations - Australia, Japan, Mexico, New Zealand, Singapore, Vietnam, Brunei, Chile, Malaysia, Peru and Canada. It came into effect on December 30 2018 with an aim to give the member states better access to each other’s markets and also to eliminate import tariffs by as much as 95 per cent. While Japan is the largest economy in the group, countries like China and Britain have increasingly shown interest in joining the club.    

In addendum to import benefits, the pact also obliges member states to cooperate on regulations, such as food standards. However, it is imperative to note that, unlike the European Union, CPTPP is not a single market and therefore, members are not required to have identical market standards and regulations. Additionally, all the members are also allowed to ink trade pacts with other countries, like the recent AUKUS deal that involved Canberra inking a deal with the US.

China, UK apply for accession 

On September 16, the world’s second-largest economy, China, formally applied for the group’s membership. According to ANI, China’s Minister of Commerce Wang Wentao filed a written application for his country’s accession to the bloc. Later, Japan, which is in the chair this year, said that it was vetting Beijing's application but stopped short of providing a timeline for a future course of action. "Japan believes that it's necessary to determine whether China, which submitted a request to join the TPP-11, is ready to meet its extremely high standards," Japanese Economy Minister Yasutoshi Nishimura told reporters on Friday.

Earlier in February, the UK had expressed its desire to join CPTPP, highlighting its post-Brexit tilt. Later in June, the bloc announced that it would soon begin talks with Downing Street for the same.

"One year after our departure for the EU we are forging new partnerships that will bring enormous economic benefits for the people of Britain,” UK Prime Minister Johnson had told reporters in the aftermath. "Applying to be the first new country to join the CPTPP demonstrates our ambition to do business on the best terms with our friends and partners all over the world and be an enthusiastic champion of global free trade,” he had added.

Image: AP

(With inputs from AP)