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Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Multilateral free trade agreement

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The twelve members have combined economies representing 14.4% of global gross domestic product, at approximately US$15.8 trillion, making the CPTPP the world's fourth largest free trade area by GDP, behind the United States–Mexico–Canada Agreement, the European single market, and the Regional Comprehensive Economic Partnership. While originally only involving Pacific Rim countries, it has since evolved to also include outside countries.

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. 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 Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, 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.

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