One year after the US withdrew from the Trans-Pacific Partnership (TPP) trade deal, the remaining 11 countries have agreed to move ahead with a revised version of the agreement.
The countries appear to have settled their differences over the trade pact, which was renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) last year, following two days of talks in Tokyo that ended on Tuesday (23 January).
Canada had been insisting on protections for its cultural industries such as movies, TV and music, but has since been persuaded to return to talks following lobbying by Japan and Australia.
While based on the TPP framework, around 20 provisions have been suspended if Washington stays out of the pact, 11 of which are related to intellectual property. And a revision of the original TPP text means the CPTPP can come into force 60 days after at least six signatories complete domestic procedures.
The deal is expected to eliminate 98% of tariffs in a marketplace worth close to around US$13.7trn. It will deliver 18 new free trade agreements between the TPP parties.
Canada’s Minister of International Trade, François-Philippe Champagne, welcomed the conclusion of talks, and confirmed the achievement of “a significant outcome” on culture as well as an improved arrangement on autos with Japan, along with the suspension of many intellectual property provisions of concern to Canadian stakeholders.
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By GlobalData“Canada has always said that we would only agree to a deal that is in Canada’s best interests. To that end, Canada has been working very hard on the new CPTPP, from spearheading the first meetings of officials in May 2017 to proposing several suspensions and changes to secure better terms for Canadians throughout this burgeoning region.
“Canada has shown that it can and will work hard to set the terms of trade so the middle class can compete and win on the world stage. Canada successfully concluded an agreement with hard-fought gains for Canadians, thanks in large part to a dedicated and hard-working negotiating team and Canada’s special envoy Ian McKay.”
Australia’s Minister for Trade, Tourism and Investment, Steven Ciobo, described it as a “landmark deal” that will allow its country’s businesses and farmers more opportunities to export their food, fibre and services to more customers, more easily.
“More trade means more export opportunities for local businesses, and more Australian jobs,” he said in a statement. “This is a multi-billion-dollar win for Australian jobs. Australian workers, businesses, farmers and consumers will benefit.”
It is expected the agreement will be signed in March in Chile.
The 11 countries include Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The UK is also understood to be exploring the possibility of joining a trans-Pacific trade bloc after it leaves the European Union (EU), as part of plans to find alternative export markets. Taiwan is also thought to be preparing for bilateral and multilateral negotiations.
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