Q&A related to CPTPP

2022-03-19

1. What is the full name of CPTPP?


The full name is "Comprehensive and Progressive Agreement for Trans Pacific Partnership"


2. What is the difference between TPP and CPTPP?


TPP (Trans Pacific Partnership) was originally developed by members of the Asia Pacific Economic Cooperation. It aims to promote trade liberalization in the Asia Pacific region. On November 14, 2010, the closing day of the APEC summit, the nine participating countries agreed to the president's proposal, which will be completed and announced at the APEC summit in November 2011. On January 23, 2017, the then US President Trump signed an executive order to withdraw the US from the TPP. On November 11, 2017, the TPP was reorganized into the CPTTP, and 22 clauses in the agreement that were advocated by the United States but opposed by other countries were frozen.


3. Which countries are the current CPTPP members?


The CPTPP currently consists of 11 member states: Japan, Canada, Mexico, Chile, Peru, New Zealand, Australia, Singapore, Vietnam, Brunei and Malaysia.


4. What are the main contents of the CPTPP?


Highly liberalized trade in goods——


The number of tax items and trade volume that members achieve zero tariffs on average account for about 99.5%, and more than 85% products will be subject to zero tariffs as soon as the agreement takes effect. Excluded from the scope of zero tariff products are mainly agricultural and aquatic products, but relevant members have also achieved partial liberalization of trade in such products through the

establishment of tariff quotas and partial tax reductions.


Significant opening of service and investment markets——


In the field of service trade and investment, market opening is required to be implemented in the form of a negative list; Make a high level commitment to openness in the field of integration and telecommunications; limit members' performance requirements for investors, and prohibit requirements for local ingredients and technology localization.


Relaxing the web and boosting ecommerce——


Ensure the free flow of information and data related to the Internet and the digital economy; Keep the localization economy; Keep the localization requirements of computing facilities; For software requirements of computing facilities; For software sold to the public, enterprises shall not be required to provide software source code sold to the public, enterprises shall not be required to provide software source code to the government; Non to the government; Non--discriminatory treatment of digital products shall be given.


Strengthen intellectual property protection——


The CPTPP's provisions on knowledge products go far beyond the TRIPS Agreement. The scope and level of (TRIPS) requires joining relevant treaties and conventions, expanding the scope of intellectual property protection, extending the period of intellectual property protection, and increasing civil and criminal penalties for intellectual property infringement.


Strengthening Environmental Discipline——


All parties pledge not to lower the level of environmental protection in order to encourage trade and investment, and will jointly combat illegal trade in wild animals and plants, even illegal fishing, and the implementation of high level environmental protection standards, emphasizing the enforceability of environmental clauses, and linking environmental protection with trade sanctions.


Open government procurement——


Require all parties to fully open up the government procurement market and provide access to products and services of other parties. Provide national treatment, provide access to products and services of other parties. Provide national treatment, ensure timely release of government procurement information, and commit to fair ensure timely release of government procurement information, and commit to fair and non discriminatory treatment of bidders.


New rules for state owned enterprises——


Strengthen information transparency and provide a list of state owned enterprises. Non commercial services provided by the government to state owned enterprises industry support, must not harm the interests of other members and their industries, require governments to maintain nondiscrimination and neutrality in corporate supervision, and clarify that relevant provisions of state owned enterprises apply to

dispute settlement clauses.


Labor rights protection rules——


Demands compliance with the freedom of association, collective bargaining rights, elimination of basic labor rights such as forced labor, abolition of child labor, and elimination of employment discrimination; Require member states to bring provisions such as minimum wages, working hours, and occupational health and safety under legal supervision. Dispute settlement mechanisms apply to labor

provisions, and organizations such as labor affairs committees are established under the framework of the agreement to review the implementation of labor provisions.


Combating corruption and commercial bribery——


Commitment to effectively enforce their respective anticorruption laws and regulations, while ensuring that stakeholders are due process powers in Litigation. Commitment to criminal penalties for active or induced corruption. Require the establishment or maintenance of codes of conduct and standards for public officials and encourage reporting of corrupt practices. Protect those who report corrupt practices and strengthen international cooperation against corruption.


5. The Obama administration agreed to join the TPP, the Trump administration announced its withdrawal from the TPP, and the Biden administration said it would not join the CPTPP, why?


The United States was the most active promoter of the TPP agreement during the Obama era. Trump leads U.S. exit group, withdraw from the TPP, and the Biden administration said it would not join the CPTPP. Given these considerations: traditional trade agreements are no longer the best option for the United States. The emptiness of the US industry is becoming more and more serious, and it is difficult for free trade agreements to open up the market on a larger scale. An upgraded version of the North American trade agreement led by the Trump administration. The issue of cheap labor and end markets has been partially addressed. The Biden administration abandoned the CPTPP and mainly promoted the "Indo Pacific Economic Framework Concept" for the purpose of supply chain security and core technology control.


6. When did China formally apply to join the CPTPP?


On September 16, 2021, China pledged to the Comprehensive and Progressive Agreement on Trans Pacific Relations (CPTPP). The depositary, New Zealand, submitted a written letter of China's formal application to join the CPTPP, and the trade ministers of the t wo countries communicated on the follow up work of China's formal application to join the CPTPP. On November 4, 2021, President Xi Jinping reemphasized in his keynote speech at the 4th China International Import and Export Expo to actively promote accession to the Comprehensive and Progressive Agreement for Trans Pacific Partnership.


7. Why does China apply to join the CPTPP?


Opening up is a distinctive sign of contemporary China. Joining the CPTPP will firstly help create a favorable international economic and trade environment for China, secondly, it will help promote high quality development through high level opening up, and thirdly, it will help China’s in depth participation in economic globalization, and ultimately, it will help China in It will exert its due influence in the

formulation of future international economic and trade rules and international governance.


8. Why do some scholars compare China's application to join the CPTPP negotiations as "the second WTO accession"?


Comparing it to "the second WTO accession", on the one hand, it shows the significance of joining the CPTTP for China's further opening to the outside world; on the other hand, it also shows that the joining process is bound to be tortuous. It took 15 years for China to formally submit an application for "returning customs" in 1986 to "joining the WTO" in 2001.


9. What are the main challenges of joining the CPTPP?


After the signing of the Regional Comprehensive Economic Partnership (RCEP), the gold content of China's free trade zone network has been further enhanced. Through RCEP, China and Japan have established free trade relations, which is a major breakthrough since the implementation of the free trade zone strategy. Based on the current economic development pattern at home and abroad and the

characteristics of the CPTPP rules, joining the CPTPP should focus on further solving the following problems:


The reform of state owned enterprises;

Intellectual property protection issues;

Labor rules;

Environmental protection issues;

Data flow problem.



share