Trans-Pacific Partnership Agreement (TPP) & Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
TPP & CPTPP
The Trans-Pacific Partnership Agreement (TPPA) is a trade agreement between 12 Pacific Rim nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam signed on 4 February in Auckland, New Zealand.
The condition for entry into force of the Agreement requires ratification by at least 6 parties accounting for 85% of the combined GDP of the 12 TPP members. The United States President Donald Trump signed an Executive Order to withdraw from the TPPA on 23 January 2017. Without US participation, the Agreement cannot enter into force. The US accounts for 60% of the combined GDP of the 12 TPP members.
Snapshot: TPPA Market
TPP GDP: US$28 trillion
TPP Population: 800 million
TPP % of world GDP: 37.5%
TPP % of world population: 11.4%
TPP % of world trade: 25.7%
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
In light of the US withdrawal, the TPP Ministers from the remaining 11 member countries convened a meeting on 21 May 2017 on the sideline of the APEC MRT Meeting in Hanoi, Vietnam and affirmed the economic and strategic importance of TPPA, particularly as a vehicle for regional economic integration. Negotiators from the 11 countries met over several rounds to find ways to implement the TPPA.
On 9-10 November 2017 in Da Nang, Viet Nam, Ministers of the 11 TPP countries reached an agreement on the core elements, the text of the agreement and way forward to implement the TPPA, which was renamed as the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP).
The CPTPP was signed by all 11 participating countries - Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Viet Nam - on 8 March 2018 in Santiago, Chile. Signing is an indication that the 11 countries accept the outcome of the negotiations and will start their domestic process to enable their ratification of the Agreement in order to bring the Agreement into force.
Entry into Force of the CPTPP / Implementation of the CPTPP
Date(s) of entry into Force:
Snapshot: CPTPP Market
CPTPP Population: 514 million (6.6% of world population)
CPTPP GDP: US$11.7 trillion (12.2% of world GDP)
CPTPP Total Trade: US$6.6 trillion (14.7% of total world trade)
CPTPP Exports: US$3.4 trillion (15.2% of world exports)
CPTPP Imports: US$3.2 trillion (14.3% of world imports)
The Text of the CPTPP
The CPTPP is a separate treaty that incorporates, by reference, the provisions of the original Trans-Pacific Partnership Agreement (TPPA). Under the CPTPP, signatories will implement the original TPPA between them, with the exception of a limited number of provisions which will be suspended. The CPTPP text should be read in conjunction with the text of the original TPPA.
A suspended provision is a provision in the original TPP Agreement which will not have effect under CPTPP. Twenty-two items from the original TPPA will be suspended under CPTPP. These suspensions will remain in place until the Parties, by consensus, agree to lift them.
It is important to note that the schedules and annexes specific to the United States as well as any reference to the United States that may appear throughout the Chapters of the original TPPA, will have no practical application as the United States is not part of the CPTPP.
CPTPP associated documents
In the context of the CPTPP, Malaysia has agreed on the following bilateral arrangements with a number of other CPTPP Parties on a range of issues. These are also sometimes referred to as - side letters.
CPTPP/ TPP TEXT AGREEMENT
The text of the Agreement was released by TPP member countries on 5 November 2015 and can be accessed by chapter below.
1. Initial Provisions and General Definitions
The Chapter includes the following Annex:
Annex 1-A: Party-Specific Definitions
2. National Treatment and Market Access for Goods
The Chapter includes the following Annexes:
Annex 2-A: National Treatment and Import and Export Restrictions
Annex 2-B: Remanufactured Goods
Annex 2-C: Export Duties, Taxes or Other Charges
Annex 2-D: Tariff Elimination
Party-specific Annexes to the Chapter:
Australia
Brunei
Canada
2-D: Canada Appendix D Appendix between Japan and Canada on Motor Vehicle Trade
Chile
Japan
2-D. Japan Appendix D-1 Appendix between Japan and the US on Motor Vehicle Trade
2-D. Japan Appendix D-2 Appendix between Japan and Canada on Motor Vehicle Trade
Malaysia
Mexico
New Zealand
Peru
Singapore
Viet Nam
United States
3. Rules of Origin and Origin Procedures
This Chapter includes the following Annexes:
Annex 3-A: Other Arrangements
Annex 3-B: Minimum Data Requirements
Annex 3-C: Exceptions to Article 3.11 (De Minimis)
Annex to the Chapter:?
Annexes to the Chapter:
5. Customs Administration and Trade Facilitation
The Chapter includes the following Annex:
Annex 6-A: Practices Relating to Antidumping and Countervailing Duty Proceedings
7. Sanitary and Phytosanitary Measures
8. Technical Barriers to Trade
The Chapter includes the following Annexes:
Annex 8-A: Wine and Distilled Spirits
Annex 8-B: Information and Communications Technology Products
Annex 8-C: Pharmaceuticals
Annex 8-D: Cosmetics
Annex 8-E: Medical Devices
Annex 8-F: Proprietary Formulas for Pre-packaged Foods and Food Additives
Annex 8-G: Organic Products
9. Investment
This Chapter includes the following Annexes:
Annex 9-A: Customary International Law
Annex 9-B: Expropriation
Annex 9-C: Expropriation Relating to Land
Annex 9-D: Service of Documents on a Party Under Section B (Investor State Dispute Settlement)
Annex 9-E: Transfers
Annex 9-F: DL-600
Annex 9-G: Public Debt
Annex 9-H
Annex 9-I: Non-Conforming Measures Ratchet Mechanism
Annex 9-J: Submission of a Claim to Arbitration
Annex 9-K: Submission of Certain Claims for Three Years After Entry into Force
Annex 9-L: Investment Agreements
Drafters' Note on Interpretation of In Like Circumstances
See country-specific Annexes to the Agreement
10. Cross-Border Trade in Services
The Chapter includes the following Annexes:
Annex 10-A: Professional Services
Annex 10-B: Express Delivery Services
Annex 10-C: Non-Conforming Measures Ratchet Mechanism
See the country-specific Annexes to the Agreement
This Chapter includes the following Annexes:
Annex 11-A: Cross-Border Trade
Annex 11-B: Specific Commitments
Annex 11-C: Non-Conforming Measures Ratchet Mechanism
Annex 11-D: Authorities Responsible For Financial Services
Annex 11-E
See the country-specific Annexes to the Agreement
12. Temporary Entry for Business Persons
Party-specific Annexes to the Chapter:
Annex 12-A. Temporary Entry for Business Persons
This Chapter includes the following Annexes:
Annex 13-A: Rural Telephone Suppliers - United States
Annex 13-B: Rural Telephone Suppliers - Peru
Party-specific Annexes to the Chapter:
Annex 15-A. Government Procurement
This Chapter includes the following Annex:
Annex 16-A: Application of Article 16.2, Article 16.3 and Article 16.4 to Brunei Darussalam
17. State-Owned Enterprises and Designated Monopolies
This Chapter includes the following Annexes:
Annex 17-A: Threshold Calculation
Annex 17-B: Process for Developing Information Concerning State-Owned Enterprises and Designated Monopolies
Annex 17-C: Further Negotiations
Annex 17-D: Application to Sub-Central State-Owned Enterprises
Annex 17-E: Singapore
Annex 17-F: Malaysia
Annex IV: Non-Conforming Activities
See country-specific Annexes to the Agreement
This Chapter includes the following Annexes:
Annex 18-A: Annex to Article 18.7.2 (International Agreements)
Annex 18-B: Annex to Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.52 (Biologics)
Annex 18-C: Annex to Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.52 (Biologics)
Annex 18-D: Annex to Article 18.46 (Patent Term Adjustments for Patent Office Delays), Article 18.48 (Patent Term Adjustment for Unreasonable Curtailment), Article 18.50 (Protection of Undisclosed Test or Other Data) and Article 18.52 (Biologics)
Annex 18-E: Annex to Section J (Internet Service Providers)
Annex 18-F: Annex to Section J (Internet Service Providers)
19. Labour
20. Environment
This Chapter includes the following Annexes:
Annex 20-A
Annex 20-B
21. Cooperation and Capacity Building
22. Competitiveness and Business Facilitation
23. Development
24. Small and Medium-Sized Enterprises
26. Transparency and Anti-Corruption
This Chapter includes the following Annex:
Annex 26-A Transparency and Procedural Fairness for Pharmaceutical Products and Medical Devices
27. Administrative and Institutional Provisions
29. Exceptions and General Provisions
30. Final Provisions
Annex I - Cross-Border Trade in Services and Investment Non-Conforming Measures
Annex II - Cross-Border Trade in Services and Investment Non-Conforming Measures
Annex III – Financial Services Non-Conforming Measures
Annex IV – State-Owned Enterprises and Designated Monopolies Non-Conforming Measures
Side letters signed by Malaysia and other TPP member countries
What is CPTPP SME Chapter All About?
First Time Exporter: CPTPP Markets
Resources for SMEs
The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) is in charge of creating a holistic and conducive entrepreneurial ecosystem.
The following information may be useful for SMEs trading, investing or doing business in Malaysia:
CPTPP Cost-Benefit Analysis (CBA), 2022
1. Cost-Benefit Analysis on the Potential Impacts of the CPTPP on the Malaysian Economy and Key Economic Sectors
2. Slides on the Summary of the CPTPP CBA
[Slides]
For more information or enquiries, please email to allcptpp@miti.gov.my
COMMISSION MEETING
The Commission, composed of government representatives of each Party at the level of Ministers or Senior Officials, is the highest decision-making body in any matter relating to the implementation or operation of the CPTPP.
To date, eight (8) Commission Meetings have taken place. They are as follows:
Eighth CPTPP Commission Meeting
The Eighth CPTPP Commission Meeting was held in Vancouver, Canada on 28 November 2024, at the Ministerial Level
Joint Statement
Decision Endorsed:
Seventh CPTPP Commission Meeting
The Seventh CPTPP Commission Meeting was held in Auckland, New Zealand on 16 July 2023, at the Ministerial level.
Fifth CPTPP Commission Meeting
The Sixth CPTPP Commission Meeting was hosted by Singapore on 8 October 2022, at the Ministerial level.
Sixth CPTPP Commission Meeting
The Fifth CPTPP Commission Meeting was held virtually and hosted by Japan on 1 September 2021, at the Ministerial level.
Fourth CPTPP Commission Meeting
The Fourth CPTPP Commission Meeting was held virtually and hosted by Japan on 2 June 2021, at the Ministerial level.
Decision Endorsed:
Third CPTPP Commission Meeting
The Third CPTPP Commission Meeting was held virtually and hosted by Mexico on 5 August 2020 / 6 August 2020 (MYT), at the Ministerial level.
Second CPTPP Commission Meeting
The Second CPTPP Commission Meeting was held in Auckland, New Zealand on 9 October 2019, at the Senior Officials level.
Decisions Endorsed:
1. Commission Rules of Procedure
First CPTPP Commission Meeting
The First CPTPP Commission Meeting was held in Tokyo, Japan on 19 January 2019, at the Ministerial level.
Decisions Endorsed:
1. Administration for Implementation of the CPTPP
2. Accession Process of the CPTPP
3. State-State Dispute Settlement (SSDS) Rules of Procedures
UNITED KINGDOM ACCESSION INTO THE CPTPP
On 1 February 2021, The United Kingdom (UK) formally requested accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and on 2 June 2021, the Fourth Commission Meeting agreed to commence accession negotiations with the UK.
On 16 July 2023 in Auckland, New Zealand, CPTPP Ministers and UK formally signed the UK Accession Protocol to enable UK to join the CPTPP.
With the signing of the Protocol, the UK officially became the 12th CPTPP signatory and the first economy to accede to the Agreement after the 11 founding CPTPP Parties.
As a G7 Member and the world’s sixth-largest economy, Malaysia welcomes the UK’s accession into the CPTPP, which will significantly benefit all members of the Agreement. Furthermore, UK’s entry is an important milestone as this marks Malaysia’s first Free Trade Agreement (FTA) with the UK.
Malaysia looks forward to the eventual benefits for Malaysian exporters and businesses. Upon entry into force, Malaysian exports to the UK will immediately enjoy preferential duty-free treatment on 94% of tariff lines, including exports of particular significance, notably palm oil, cocoa, rubber, electrical and electronics and chemicals. The signing of the UK Accession Protocol is also timely as it sends a strong signal to the world on the advantages of the CPTPP membership, including the Parties’ commitment towards an open, rules-based and liberal multilateral trading system
CPTPP Parties and the UK will now work towards completing their domestic processes to bring the Accession Protocol into force.
The UK Accession Protocol should be read in conjunction with the CPTPP treaty and the original TPP text;
Bilateral arrangements (Side Letters) with the UK were concluded on 16 July 2023 in Auckland, New Zealand. The following documents comprises side letters between Malaysia and the United Kingdom;
ePCO APPLICATION
The CPTPP ePCO is a web-based application and approval system that certifies the country of origin of a particular product. In addition, the ePCO is intended to prove the origin of goods in order to satisfy Customs or trade requirements under the CPTPP.
Template - Declaration on Transit and Transhipment and Formal Undertaking
For information on ePCO training and any issues arising from the use of the system, please contact Dagang Net’s Careline.
CARELINE at 1300 133 133 or email to careline@dagangnet.com
Website: www.dagangnet.com/customer-service
FAQs
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
2017
Trans-Pacific Partnership Agreement (TPP)
2016
2015
OTHER DOCUMENTS
Outreach Session on Advantages of CPTPP and RCEP – 8 August 2023 [slides]
MALAYSIA’S PUBLIC CONSULTATION ON THE GENERAL REVIEW OF THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)
Closing on 24 JUNE 2024
Introduction
The Ministry of Investment, Trade and Industry (MITI) is seeking Malaysian public feedback on the General Review of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The public consultation period via online survey is from 17 May 2024 to 24 June 2024.
Background
The CPTPP is a high-standard and comprehensive Free Trade Agreement (FTA) between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The United Kingdom (UK) is the latest member to accede to the CPTPP, with the signing of its Accession Protocol on 16 July 2023.
The CPTPP enhances and complements Malaysia’s trade with the Asia-Pacific region and beyond. It includes ambitious market access commitments in goods and services, facilitates customs arrangements, as well as set out robust and predictable investment regulations, as well as rules pertaining to e-commerce and intellectual property, among others.
The General Review of the CPTPP
The General Review process ensures that the CPTPP remains the highest possible standard with its disciplines continuing to be relevant to trade and investment issues into the future. Members have agreed for the General Review of the CPTPP to begin in 2024, based on the Terms of Reference for Conducting the General Review of the CPTPP (Annex A) with a final report to be confirmed by consensus of all Parties to the CPTPP.
Scope of the CPTPP General Review
The General Review will consider how to enhance the Agreement, including by identifying ways to facilitate maximum utilisation of the CPTPP by traders and investors and to improve the uptake of the Agreement; identifying provisions in the Agreement that would benefit from revision or updating, and, identifying and strengthening cooperation in areas of mutual interest, to ensure the Agreement remains of the highest possible standard.
Any changes made to the Agreement through the General Review would require agreement among all CPTPP Parties based on consensus.
Invitation to Provide Feedback
With that context in mind, MITI invites Malaysian businesses and members of the public to provide feedback via online survey by 24 June 2024. Feedback should be submitted via the form HERE. Alternatively; the form can be accessed via the QR code below.
Please note that all submissions received may be published and attributed to the respective respondents unless they expressly request MITI not to do so. As such, if respondents would like their submissions, and their identity, to be kept confidential, please state so in the submission under the transparency declaration. In addition, MITI reserves the right not to publish any submissions received.
CONTACT US
Any enquiry on the CPTPP in general, can be directed to:
allcptpp@miti.gov.my
Any enquiry on the application of Certificate of Origin (CO) under the CPTPP, can be directed to:
pco@miti.gov.my
Any enquiry on the specific CPTPP issues, can be directed to the relevant Ministries/ Agencies as listed below:
Issue |
Ministry/ Agency |
Border issues concerning import and export of products |
Royal Malaysian Customs Department
|
Sanitary and Phytosanitary (SPS) measures to ensure food safety |
Ministry of Agriculture and Food Security International Division |
Issues related to Financial Services, including banking and insurance services |
Bank Negara Malaysia
|
Securities Commission Malaysia
|
|
Issues related to Telecommunications |
Ministry of Communications
|
Issues related to E-Commerce |
Ministry of Investment, Trade and Industry
|
Issues concerning bidding for Government Procurement (GP) projects, including construction projects, as well as bidder’s registration |
Ministry of Finance
|
Issues related to Intellectual Property (IP) and Competition Policy |
Ministry of Domestic Trade and Cost of Living
|
Issues related to Stated-Owned Enterprises (SOEs), Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) |
Ministry of Finance
|
Ministry of Domestic Trade and Cost of Living
|
|
Labour rights issues such as freedom of association, trade unions, compulsory labour, child labour, as well as employment and occupation discrimination |
Ministry of Human Resources
|
Issues related to environment |
Ministry of Natural Resources and Environmental Sustainability
|
Issues related to technical assistance and capacity building programmes for Small and Medium-sized Enterprises (SMEs) |
Ministry of Entrepreneur and Cooperative Development
|
Ministry of Investment, Trade and Industry
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