This article appeared in Vietnam Briefing in March 2018.
On March 8, 11 countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP in Chile. The agreement represents 13.5 percent of the global economy, a total of US$10 trillion dollars and 15 percent of the global trade revenue, equal to US$5 trillion.
Members include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Without the US, the overall gains have reduced to a third, but it still caters to around 500 million people. CPTPP will come into effect once six of its 11 members ratify the agreement.
The agreement not only focuses on reducing trade tariffs between its members but also on reducing non-tariff measures by easing the existing regulations and making them more transparent, along with reforms in labor and environmental regulations. It also includes an investor-state dispute settlement (ISDS) mechanism that allows firms to sue governments under certain conditions.
Vietnam ratified the CPTPP on 12 November 2018. Australia, Canada, Japan, Mexico, New Zealand, and Singapore have already ratified the agreement, which will come into effect on 30 December 2018. For Vietnam, the agreement will be in effect 60 days after it notifies New Zealand, the CPTPP depositary.
Click the link below to read about the CPTPP’s:
- Economic impact on member countries;
- Economic impact on Vietnam;
- Tariffs;
- Opportunities and challenges.
This is an exerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.
