Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Source : Indian Express
GS II : Important International institutions, agencies and fora- their structure, mandate
Overview
- News in Brief
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Why in News ?
The UK has formally agreed to join a significant Indo-Pacific trading bloc, making it the first European nation to do so.
News in Brief
- This agreement is Britain’s greatest trade agreement since Brexit, despite estimates that it will only be worth £1.8 billion annually.
- Government’s business and trade secretary Kemi Badenoch signed the accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand.
- This require parliamentary scrutiny and legislation in the UK to bring it into force.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
- The 11 countries involved are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
- It is a free trade agreement (FTA).
- In March 2018, it was signed.
- After the United States withdrew from the Trans-Pacific Partnership (TPP) in 2017, it replaced it.
- The Asia-Pacific Economic Cooperation (APEC) is a membership organisation made up of all 11 CPTPP nations.
- Also known as TPP12 or TPP-12.
- It also has rules addressing competition, intellectual property rights and protections for foreign companies.
- The agreement calls on nations to commit firmly to opening services and investment markets and to abolish or significantly lower tariffs.
- India is not a member.
How CPTPP benefits UK?
- The CPTTP, according to the UK government, will lower tariffs for UK exports to Asia Pacific nations.
- With the UK as a member, the trading bloc’s combined GDP will reach 12 trillion pounds, accounting for 15% of world trade.
- After Brexit in 2020, Britain is eager to strengthen commercial connections in the Pacific.
- The UK’s long-term productivity is forecast to be reduced by 4% as a result of Brexit.
- The UK will probably have trouble securing free trade agreements with powerful nations like China.
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