TPP replacement CPTPP to be signed in Chile on Friday
A year after the US withdrew from the Trans-Pacific Partnership, the 11 remaining states will gather in Chile today ahead of Friday’s signing of an America-less trade deal.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will partially reflect the original trade deal—reducing tariffs in economies comprising more than 13% of the world economy.
However, CPTPP makes some changes, particularly around intellectual property rights. Original provisions will be suspended, allowing parties to provide fewer extensive technological protection measures (TPMs) that guard copyright works.
The biggest question surrounding CPTPP is whether or not it will be effective without the US, which accounts for over 20% of global GDP. Signatories like New Zealand are optimistic, believing the new deal will see GDP increase between 0.3% and 1%, or $1.2 billion and $4 billion, a year. For others such as Japan, the success of CPTPP is necessary for achieving domestic structural reforms–in PM Shinzo Abe’s case, his “Abenomics” program.
In the coming months, note to what extent the CPTPP achieves the results promised and how it impacts domestic politics of member countries. Also look for how the current US administration responds and if future administrations express a desire to join.
Delve deeper: The third way: Asia’s economic leadership turmoil
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