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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

Date(s) of entry into Force:

  • 30 December 2018 for Australia, Canada, Japan, Mexico, New Zealand, and Singapore
  • 14 January 2019 for Viet Nam
  • 19 September 2021 for Peru
  • 29 November 2022 for Malaysia
  • 21 February 2023 for Chile



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.

 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:

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.

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

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

[Full CBA Report]

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, 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

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;

 

Archive

SUBSTANTIAL CONCLUSION OF NEGOTIATIONS ON UK'S ACCESSION INTO CPTPP

On 1 February 2021, the United Kingdom became the first country to formally apply for accession into the CPTPP.

After five rounds of accession negotiations, the CPTPP Accession Working Group and the United Kingdom have reached substantial conclusion of negotiations on UK's accession into CPTPP. The CPTPP Ministers and representatives met virtually with the UK Secretary of State for International Trade, Kemi Badenoch today, 31 March 2023, to announce this outcome. The Joint Ministerial Statement can be read here.

Joint Ministerial Statement on the UK’s accession process to the CPTPP.pdf

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. 

  1. Video guide for the CPTPP ePCO application

  1. User manuals for the application of the CPTPP Cost Analysis (CA) and Certificate of Origin (CO)

CA Application User Manual

CO Application User Manual

  1. Other Reference

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

 

 

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

  1. Ms Asmarliyana Mohd Noh, Corporate Planning Division
    asmarliyana.noh@customs.gov.my

  2. Ms Fatimatul Zaharah Mohd Mahfuz, Technical Services Division
    fatimah.mahfuz@customs.gov.my

  3. Ms Farah Nur Sarah Mohd Subakir, Technical Services Division
    farah.subakir@customs.gov.my

  4. Mr Razali Haizir, Customs Division
    razali.haizir@customs.gov.my

Sanitary and Phytosanitary (SPS) measures to ensure food safety
and the protection of human life against plant- or animal-borne diseases

Ministry of Agriculture and Food Security

  1. International Division
    Spscontactpoints@mafi.gov.my
     

Issues related to the Technical Barriers to Trade (TBT) namely on regulatory, standards requirement and acceptance of conformity assessments results

Department of Standards Malaysia

  1. Ms Siti Mariam Mohd Din, Strategic Planning Division
    mariam@jsm.gov.my

  2. Ms Sabariah Abdul Talib, Strategic Planning Division
    sabariah@jsm.gov.my

Issues related to Financial Services, including banking and insurance services

Bank Negara Malaysia

  1. International Department
    nego@bnm.gov.my
     

Securities Commission Malaysia

  1. International Affairs Department
    intl@seccom.com.my
     

Issues related to Telecommunications and E-Commerce

Ministry of Communications and Digital

  1. Ms Emmy Hermina Natashia, Communications Technology Division
    emmylatif@kkd.gov.my
     

Issues concerning bidding for Government Procurement (GP) projects, including construction projects, as well as bidder’s registration

Ministry of Finance

  1. Government Procurement Division
    gpfta@treasury.gov.my
     

Issues related to Intellectual Property (IP) and Competition Policy

Ministry of Domestic Trade and Cost of Living

  1. Mr Arunan Kumaran, Policy and Strategic Planning Division
    arunan@kpdnhep.gov.my
     

Issues related to Stated-Owned Enterprises (SOEs), Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs)

Ministry of Domestic Trade and Cost of Living

  1. Mr Arunan Kumaran, Policy and Strategic Planning Division 
    arunan@kpdnhep.gov.my
     

Ministry of Finance

  1. Mr Ahmad Farid Ahmad, Government Investment Companies Division
    Farid.ahmad@treasury.gov.my
     

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

  1. YM Raja Mohd Nizam bin Raja Kamarulbahrin, International Division
    rajanizam@mohr.gov.my

  2. Ms Wan Maisarah binti Md Isa, International Division
    wanmaisarah@mohr.gov.my

Issues related to technical assistance and capacity building programmes for Small and Medium-sized Enterprises (SMEs)

Ministry of Entrepreneur and Cooperative Development

  1. Policy and International Relations Division
    sa.bdha@kuskop.gov.my