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World Affairs, Economy
Mahesh

04/04/23 06:39 AM IST

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

In News
  • Britain recently agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact based around the Pacific rim.
About CPTPP
  • CPTPP is a free trade agreement (FTA) that was agreed in 2018 between 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
  • Britain will become the 12th member, and the first to join since the partnership since its inception.
  • The CPTPP countries will have a combined GDP of 11 trillion pounds ($13.6 trillion) once Britain joins, or 15% of global GDP.
Significance
  • CPTPP removes 99% of tariffs on goods and services, just like the original TPP did, all the member countries have agreed to cut down on wildlife trafficking. That helps elephants, rhinoceroses, and marine species the most.
  • It prevents environmental abuses, such as unsustainable logging and fishing. Countries that don't comply will face trade penalties.
  • More than 99% of British exports, including key markets such as cheese, cars, chocolate, machinery, gin, and whisky, will have zero tariffs.
  • The deal is expected to add GBP 1.8 billion (USD 2.2 billion) annually to the U.K. economy in the long run, a modest boost of 0.08% to GDP.
  • The CPTPP is a "gateway" to the Indo-Pacific region, which is expected to account for a majority (54%) of global economic growth in the future.
  • As a CPTPP member, the U.K. will have a veto on whether China joins the treaty.
India's view point
  • India did not join CPTPP as it seeks to place greater labor and environmental standards on its other partners and CPTPP draft includes narrowly detailed qualifications on standards for investment protection, provisions to protect the host state’s right to regulate, and the imposition of detailed transparency requirements.
Source- Indian Express

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