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  jata  Malaysia's Free Trade Agreements

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

The CPTPP entered into force on 30 December 2018 for:

  • Australia
  • Canada
  • Japan
  • Mexico
  • New Zealand, and
  • Singapore;
    and on 14 January 2019 for
  • Vietnam.


The CPTPP will enter into force for Brunei Darussalam, Chile, Malaysia and Peru 60 days after they complete their respective ratification process. This would mean that at this point in time, these 4 countries including Malaysia will not be able to enjoy the preferential tariff rates for members under this Agreement.

When will Malaysia complete our domestic procedures for ratification of the CPTPP?

Malaysia is still evaluating the Agreement and that we do not have a specific date for ratification.

The new Government has yet to decide whether Malaysia will ratify the Agreement or not, and the final ratification decision will be made by the Prime Minister and his Cabinet.

Snapshot: CPTPP Market
A market of 500 million people, and combined GDP of US$10 trillion

CPTPP GDP: US$10.2 trillion
CPTPP Population: 495 million
CPTPP % of world GDP: 13.5%
CPTPP % of world population: 6.8%
CPTPP % of world trade: 15.3%

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.

 Text of the Agreement [ENG]

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.

New side letters agreed under the CPTPP:

Side letters agreed by all CPTPP Parties

Side letters signed by Malaysia and other CPTPP Parties

Agreements to maintain TPPA side letters:

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.

Preamble

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 


3. Rules of Origin and Origin Procedures 


4. Textiles and Apparel 


5. Customs Administration and Trade Facilitation


6. Trade Remedies 

  • 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


11. Financial Services

  • 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


13. Telecommunications 

  • This Chapter includes the following Annexes:

    • Annex 13-A: Rural Telephone Suppliers - United States

    • Annex 13-B: Rural Telephone Suppliers - Peru


14. Electronic Commerce 


15. Government Procurement 


16. Competition Policy 

  • 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


18. Intellectual Property 

  • 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 


25. Regulatory Coherence


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 


28. Dispute Settlement 


29. Exceptions and General Provisions


30. Final Provisions



Country Specific Annexes to the Agreement

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



TPP Malaysia Side Letters

Side letters signed by Malaysia and other TPP member countries

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, four (4) Commission Meetings have taken place. They are as follows:

 

Fourth CPTPP Commission Meeting

The Fourth CPTPP Commission Meeting was held virtually and hosted by Japan on 2 June 2021, at the Ministerial level.

Joint Statement


Decision Endorsed:

1. Decision by the Commission of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership regarding the United Kingdom’s Formal Request to Commence the Accession Process

 

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.

Joint Statement

 

Second CPTPP Commission Meeting

The Second CPTPP Commission Meeting was held in Auckland, New Zealand on 9 October 2019, at the Senior Officials level.

Concluding Joint Statement


Decisions Endorsed:

1. Commission Rules of Procedure

2. Roster of Panel Chairs

 

First CPTPP Commission Meeting

The First CPTPP Commission Meeting was held in Tokyo, Japan on 19 January 2019, at the Ministerial level.

Joint Statement


Decisions Endorsed:

1. Administration for Implementation of the CPTPP

2. Accession Process of the CPTPP

  1. Annex
     

3. State-State Dispute Settlement (SSDS) Rules of Procedures

  1. Annex - Rules of Procedures under Chapter 28 (Dispute Settlement) of the CPTPP
  2. Annex - Code of Conduct for SSDS under Chapter 28 (Dispute Settlement) of the CPTPP
     

4. Investor-State Dispute Settlement (ISDS) Code of Conduct

  1. Annex - Code of Conduct for ISDS under Chapter 9 Section B (ISDS) of the CPTPP

FAQs

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

2017

 

Trans-Pacific Partnership Agreement (TPP)

2016


2015

 

 

CONTACT US

Any enquiry on the CPTPP can be directed to:

  1. Ms Sara Hani Mohd Zin
    Senior Assistant Director
    Ministry of International Trade and Industry (MITI)
    Email: sarahani@miti.gov.my
     
  2. Ms Aqmar Farzana Nor Azizan
    Assistant Director
    Ministry of International Trade and Industry (MITI)
    Email: aqmar@miti.gov.my
MIDA MATRADE MPC MIDF MARii MSI SIRIM Berhad Exim Bank Department of Standards Malaysia (JSM) InvestKL MRM MPK My Gov