On
March 9th, 2018, Minister of Industry and Trade, Vietnam Tran Tuan Anh and 10
Ministers of the Member countries signed the Comprehensive and Progressive
Agreement for Trans-Pacific partnership (CPTPP) in the capital Santiago, Chile.
The historic process:
CPTPP, a new generation free-trade agreement, is
established to replace TPP after the exception of U.S – the world’s largest
economy. To the contrary of this situation, CPTPP still holds the high
standards. This agreement will be available in 60 days after being signed by 6
of 11 member countries, including Australia, Brunei, Canada, Chile, Japan,
Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Speaking after the signing ceremony, The
Minister of Foreign Affairs, Chile Heraldo Munoz said: “CPTPP is an unique
signal to protest the protectionism and advocating a diversified world,
multilateral trade”. It is expected that CPTPP is a crucial document to set up
a sample for the commercial transactions in the future.
CPTPP founded in the context of President Donal
Trump’s threats to increase taxes on steel and aluminum, which impacts many
countries and could create a commercial global war.
CPTPP reduces the tariff between 11 member
countries which accounted for 13% of the global economy with GDP hit 10,000
billion USD, if it involved U.S, the rate was 40%.
President Chile Michelle Bachelet addressed: “We
are here today can be proud of ending this process and send a meaningful
message to the community that opening the market, economic integration and international
cooperation are the best tool for creating opportunity and prosperity for the
economy”.
U.S moved away from CPTPP and tireless efforts
are rewarded:
At this time, CPTPP is the world’s largest
commercial agreement. The Washington’s retreat from TPP did not give an end
this agreement, with a number of efforts from members, especially Japan, has
helped revive the high standard agreements in order to create new standards for
global trade.
With the APEC 2017 host country role, Vietnam
and Japan made efforts to put everything back in orbit. Following this, the
content of CPTPP eliminated some requirements requested by U.S from the round
of TPP negotiation, including the rules strengthen intellectual property protection to
pharmaceutical products. Many countries and activists believe that this
regulation will increase the price of drugs. A final draft of the CPTPP was
announced in February 21st in New Zealand.
CPTPP retains the contents of the TPP but for
some member countries postponed their obligations. It is expected that CPTPP is
comprehensive, balances the interests and has the benefits of the countries too
after difficult but constructive negotiations.
ANT Lawyers strives to follow CPTPP and other
inter countries agreement to exploit best benefits for the clients.