The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), previously abbreviated as TPP11 or TPP-11 before enlargement, is a

trade agreement A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common tra ...

between

Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...

Brunei Brunei, officially Brunei Darussalam, is a country in Southeast Asia, situated on the northern coast of the island of Borneo. Apart from its coastline on the South China Sea, it is completely surrounded by the Malaysian state of Sarawak, with ...

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...

Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...

Malaysia Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...

Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...

New Zealand New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...

Peru Peru, officially the Republic of Peru, is a country in western South America. It is bordered in the north by Ecuador and Colombia, in the east by Brazil, in the southeast by Bolivia, in the south by Chile, and in the south and west by the Pac ...

Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...

, the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

and

Vietnam Vietnam, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...

. The twelve members have combined economies representing 14.4% of global

gross domestic product Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...

, at approximately trillion, making the CPTPP the world's fourth largest

free trade area A free trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...

by GDP, behind the United States–Mexico–Canada Agreement, the

European single market The European single market, also known as the European internal market or the European common market, is the single market comprising mainly the member states of the European Union (EU). With certain exceptions, it also comprises Iceland, ...

, and the

Regional Comprehensive Economic Partnership The Regional Comprehensive Economic Partnership (RCEP ) is a free trade agreement among the Asia-Pacific countries of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, S ...

History

Trans-Pacific Partnership

The CPTPP evolved from the Trans-Pacific Partnership (TPP) abbreviated as TPP11 or TPP-11, an agreement which was never ratified due to the withdrawal of the United States. The TPP had been signed on 4 February 2016 but never entered into force, as the U.S. withdrew from the agreement soon after the election of President

Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party (United States), Republican Party, he served as the 45 ...

. All other TPP signatories agreed in May 2017 to revive the agreement, with Shinzo Abe's administration in Japan widely reported as taking the leading role in place of the U.S.

Establishment of the CPTPP

In January 2018, the CPTPP was created as a succeeding agreement, retaining two-thirds of its predecessor's provisions; 22 measures favored by the U.S. but contested by other signatories were suspended, while the threshold for enactment was lowered so as not to require U.S. accession. The agreement to establish the CPTPP was signed on 8 March 2018 by

, and

, with the ceremony held in Santiago, Chile. The agreement specifies that its provisions enter into effect 60 days after ratification by at least half the signatories (six of the eleven participating countries). On 31 October 2018, Australia was the sixth nation to ratify the agreement; it subsequently came into force for the initial six ratifying countries on 30 December 2018.

Negotiations

During the round of negotiations held concurrently with the Asia-Pacific Economic Cooperation forum in Vietnam in November 2017, the Canadian prime minister Justin Trudeau refused to sign the agreement in principle, stating reservations about the provisions on culture and automotives. Media outlets in Australia, New Zealand, and Japan, which strongly supported quick movement on a deal, strongly criticized what they portrayed as Canadian sabotage. Canada insisted that

cultural Culture ( ) is a concept that encompasses the social behavior, institutions, and Social norm, norms found in human societies, as well as the knowledge, beliefs, arts, laws, Social norm, customs, capabilities, Attitude (psychology), attitudes ...

and language rights, specifically related to its French-speaking minority, be protected. However, Canada's major reservation was a conflict between the percentage of a

vehicle A vehicle () is a machine designed for self-propulsion, usually to transport people, cargo, or both. The term "vehicle" typically refers to land vehicles such as human-powered land vehicle, human-powered vehicles (e.g. bicycles, tricycles, velo ...

that must originate in a CPTPP member nation to enter

tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...

-free, which was 45% under the original TPP language and 62.5% under the NAFTA agreement. Japan, which is a major automobile part exporter, strongly supported lower requirements. In January 2018, Canada announced that it would sign the CPTPP after obtaining binding side letters on culture with every other CPTPP member country, as well as bilateral agreements with Japan, Malaysia, and Australia related to non-tariff barriers. Canada's Auto Parts Manufacturers' Association sharply criticized increasing the percentages of automobile parts that may be imported tariff-free, noting that the United States was moving in the opposite direction by demanding stricter importation standards in the NAFTA renegotiation, later USMCA. In February 2019, Canada's Jim Carr, Minister of International Trade Diversification, delivered a keynote address at a seminar concerning CPTPP - Expanding Your Business Horizons, reaching out to businesses stating the utilisation of the agreement provides a bridge that will enable people,

goods and services Goods are items that are usually (but not always) tangible, such as pens or Apple, apples. Services are activities provided by other people, such as teachers or barbers. Taken together, it is the Production (economics), production, distributio ...

to be shared more easily.

Chapters

TPP modification and incorporation

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) incorporates most of the provisions of the abandoned Trans-Pacific Partnership (TPP) agreement, using '' mutatis mutandis''. Several clauses within Article 30 of the TPP were suspended for the CPTPP, including: * Accession (30.4) * Entry into Force (30.5) * Withdrawal (30.6) * Authentic Texts (30.8). The final text of CPTPP was mostly identical to the original TPP, except for some provisions advanced by the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

under the TPP, but not supported by the other members. In the

intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...

chapter,

copyright A copyright is a type of intellectual property that gives its owner the exclusive legal right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, ...

and

patent A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an sufficiency of disclosure, enabling discl ...

terms were shortened relative to TPP, and standards for digital IP protections were eliminated. Provisions allowing use of investor–state dispute settlements for

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

agreements and authorizations were also rescinded. In summary, the CPTPP amends aspects of the following TPP chapters: * Chapter 9: Investment * Chapter 10: Cross-Border Trade in Services * Chapter 11: Financial Services * Chapter 13: Telecommunications * Chapter 15: Government Procurement * Chapter 18: Intellectual Property * Chapter 20: Environment * Chapter 26: Transparency and Anti-Corruption.

CPTPP Chapters

There are currently 30 chapters in the CPTPP Agreement listed below:

Chapter 2: Goods

The chapter on goods requires the elimination of most tariffs between members and the final elimination of approx 99% of tariff lines.

Chapter 14: E-commerce

The

e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...

chapter of the CPTPP mandates that signatories adopt or at the very least maintain laws for

consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

with the aim to fight

fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...

and deceptive commercial activities.

Chapter 17: State Owned Enterprise

The chapter on

state-owned enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...

s (SOEs) requires signatories to share information about SOEs with each other, with the intent of engaging with the issue of state intervention in markets. It includes the most detailed standards for

of any trade agreement, as well as protections against Intellectual property infringement against corporations operating abroad.

Membership

Legislative process

An overview of the legislative process in selected states is shown below:

Ratifications

On 28 June 2018,

became the first country to finish its domestic

ratification Ratification is a principal's legal confirmation of an act of its agent. In international law, ratification is the process by which a state declares its consent to be bound to a treaty. In the case of bilateral treaties, ratification is usuall ...

procedure of the CPTPP, with President Enrique Peña Nieto stating, "With this new generation agreement, Mexico diversifies its economic relations with the world and demonstrates its commitment to openness and

free trade Free trade is a trade policy that does not restrict imports or exports. In government, free trade is predominantly advocated by political parties that hold Economic liberalism, economically liberal positions, while economic nationalist politica ...

". On 6 July 2018,

became the second country to ratify the agreement. On 19 July 2018,

became the third country to ratify the agreement and deposit its instrument of ratification. On 17 October 2018, the Australian Federal Parliament passed relevant legislation through the

Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...

. The official ratification was deposited on 31 October 2018. This two-week gap made

the sixth signatory to deposit its ratification of the agreement, and it came into force 60 days later. On 25 October 2018,

ratified the CPTPP, increasing the number of countries that had formally ratified the agreement to four. Also on 25 October 2018,

passed and was granted royal assent on the enabling legislation. The official ratification was deposited on 29 October 2018. On 2 November 2018, the CPTPP and related documents were submitted to the

National Assembly In politics, a national assembly is either a unicameral legislature, the lower house of a bicameral legislature, or both houses of a bicameral legislature together. In the English language it generally means "an assembly composed of the repr ...

for ratification. On 12 November 2018, the National Assembly passed a resolution unanimously ratifying the CPTPP. The Vietnamese government officially notified

of its ratification on 15 November 2018. On 14 July 2021, the CPTPP was approved by the

Congress of the Republic of Peru The Congress of the Republic of Peru () is the unicameral body that assumes legislative power in Peru. Due to broadly interpreted impeachment wording in the Constitution of Peru, the President of Peru can be Vacancy due to moral incapacity (Per ...

. The official ratification was deposited on 21 July 2021. On 30 September 2022,

ratified the CPTPP and deposited its instrument of ratification. On 17 April 2019, the CPTPP was approved by the

Chamber of Deputies of Chile The Chamber of Deputies () is the lower house of Chile's Bicameralism, bicameral National Congress of Chile, Congress. Its organisation and its powers and duties are defined in articles 42 to 59 of Chile's current Chilean Constitution of 1980, ...

. The final round of approval in the

was scheduled for November 2019, after being approved by its Commission of Constitution. However, due to a series of massive protests against the government of Sebastián Piñera, the ratification process was paused. Only in 2022, the ratification process was resumed after a new Congress and a new President were elected. Despite the public opposition of Gabriel Boric to the treaty before his election as President, the new administration did not interfere in the voting. The CPTPP was approved in the Senate with 27 votes in favor (mainly from the right-wing opposition and some center-left politicians) and 10 against, mostly by members of the ruling coalition. The treaty was deposited on 23 December, once several side letters were negotiated with the other signatories in specific topics considered harmful by the Chilean government. On 23 February 2023, Boric ratified Chile's entry to TPP-11. On 13 May 2023,

ratified the CPTPP and deposited its instrument of ratification.

Entry into force

The agreement came into effect 60 days after ratification and deposit of accession documents by at least half the signatories (six of the eleven signatories). Australia was the sixth country to ratify the agreement, which was deposited with New Zealand on 31 October 2018, and consequently the agreement came into force between

, and

on 30 December 2018. On 1 January 2019,

, and

implemented a second round of tariff cuts. Japan's second tariff cut took place on 1 April 2019. On 15 November 2018,