- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) between 11 countries around the Pacific Rim: Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam and Japan.
- The CPTPP was launched to remove trade barriers among these 11 nations representing nearly 500 million consumers in the Asia-Pacific region in a bid to counter China’s growing economic influence.
- The eleven signatories have combined economies representing 13.4 percent of global GDP, making the CPTPP one of the world’s largest free-trade areas.
When was the CPTPP negotiated?
- Negotiations for what was then simply the Trans-Pacific Partnership (TPP) began in 2010 and concluded in 2015.
- The US was party to those talks, but it withdrew from the agreement before ratification.
- The remaining 11 participants scrambled to amend the text of the agreement, and the newly renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership was signed in 2018.
Why in News?
- The U.K. has acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- The British government said the deal would mean that more than 99% of British exports — including for key markets such as cheese, cars, chocolate, machinery, gin and whisky — would have zero tariffs. It also claimed that the deal would add GBP 1.8 billion ($2.2 billion) annually to the U.K. economy in the long run.