New Trans-Pacific trade deal reached in Chile

08:38 | 09/03/2018 Cooperation

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade deal was officially signed by 11 countries in the capital city of Santiago, Chile on early March 9 (Vietnam time).

new trans pacific trade deal reached in chile
Representatives from 11 member countries signed the deal - Photo: Reuters

Representatives from 11 member countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, signed their new pact at a ceremony co-hosted by Chilean President Michelle Bachelet and Foreign Minister Heraldo Munoz.

The landmark Trans-Pacific trade agreement covers 30 chapters and deals not only with traditional areas of international trade, such as goods, services and investment, but also new issues, including e-commerce and State-owned enterprises.

When coming into force 60 days after being fully ratified by six of the 11 members, the pact will create the largest free-trade zone in the world, with a market encompassing nearly 500 million people and representing about 13.5% of global gross domestic product.

new trans pacific trade deal reached in chile
Representatives of member countries in Chile - Photo: Reuters

Chilean President Bachelet emphasised that CPTPP members would welcome the US to join the pact again, but Washington would have to accept the terms under the revised agreement. New Zealand’s Trade Minister David Parker said that the prospect of the US joining in the next couple of years was “very unlikely” and that even if Washington expressed a willingness to join

CPTPP, there was no guarantee that the members would lift all the suspensions. In the case of the US joining the CPTPP, the concerned parties would have to show concessions and flexibility in the negotiations.

Earlier on March 8, the Republic of Korea (ROK)’s Ministry of Trade, Industry and Energy announced that it would decide whether to join the CPTPP this year after considering its impact on the national economy and consulting with member states. The ROK has reached bilateral trade agreements with nine nations among the 11 member states of the CPTPP. Even if the CPTPP is effective, it would have a very limited impact on the Korean economy.

Theo NDO