Explainer | What is the CPTPP and why is China eager to join?
- China submitted a formal application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in September last year
- Beijing says its application is consistent with efforts to reform and open up the economy, but it is unclear whether China can meet the trade pact’s standards
What is the CPTPP?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the successor to the Trans-Pacific Partnership (TPP), which was a key plank in the Obama administration’s “Pivot to Asia” strategy that aimed to create an economic counterweight to China’s regional influence.
Japan led negotiations with 10 other countries, including New Zealand, Australia, Brunei, Canada, Chile, Malaysia, Mexico, Singapore, Peru and Vietnam for the new trade pact.
The deal was signed in March 2018 and came into force in December that year. It incorporated nearly all the provisions of the original TPP relating to anti-corruption, competitive bidding for government procurement, adherence by state-owned enterprises (SOEs) to market principles, some transparency and due process, as well as commercial data flows across borders with little state interference.
As one of the world’s biggest multilateral trade agreements, it has high standards for investment, financial services, intellectual property, the environment and labour rights.
Is China a member of the CPTPP?
