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:
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.
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
CPTPP Cost-Benefit Analysis (CBA), 2022
Cost-Benefit Analysis on the Potential Impacts of the CPTPP on the Malaysian Economy and Key Economic Sectors
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.
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
OTHER DOCUMENTS
CONTACT US
Any enquiry on the CPTPP can be directed to:
Ministry of International Trade and Industry
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Last updated : 15-08-2022
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