Here’s The Situation With The New International Trade Agreement
One significant development in international trade law that could lead to improvements in the coming years is the entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 30, 2018. The CPTPP is a trade agreement between 11 countries, including Canada, Japan, Australia, and New Zealand, which aims to reduce tariffs and non-tariff barriers to trade, promote investment, and establish common rules and standards for trade among its members.
The CPTPP is expected to provide significant benefits for participating countries, including increased trade and investment opportunities, improved regulatory coherence, and enhanced cooperation in areas such as intellectual property and digital trade. The agreement also includes provisions on labor rights and environmental protection, which could help to promote sustainable and inclusive economic growth.
Another notable development is the ongoing negotiations for the Regional Comprehensive Economic Partnership (RCEP), a trade agreement between 15 countries in the Asia-Pacific region, including China, Japan, South Korea, and Australia. If successfully concluded, the RCEP could create a massive free trade area covering a third of the world's GDP and population.
The RCEP negotiations have been ongoing for several years, and the agreement is expected to address a wide range of issues, including tariff reductions, investment liberalization, and intellectual property protection. The agreement could provide significant benefits for participating countries, including increased trade and investment opportunities, improved market access, and enhanced regulatory coherence.
The CPTPP could potentially impact the United States, and US businesses in several ways, even though the US is not a member of the agreement. Firstly, the CPTPP could make it more difficult for US companies to compete in the markets of participating countries, as they may face higher tariffs or other trade barriers compared to companies from member countries.
Secondly, the CPTPP could increase pressure on the US to re-join the agreement or negotiate a separate free trade agreement with member countries, as the US risks being left behind in terms of market access and competitiveness in the Asia-Pacific region.
Thirdly, the CPTPP could serve as a model for future trade agreements, influencing the terms and standards of global trade. This could potentially put pressure on the US to adopt similar provisions in its own trade agreements, such as those related to labor rights and environmental protection.
Overall, while the US is not currently a member of the CPTPP, the agreement could still have significant implications for US businesses and trade policy in the Asia-Pacific region and beyond. Nonetheless, these developments in international trade law are expected to contribute to a more open, transparent, and rules-based global trading system, which could help to promote economic growth, job creation, and development in the coming years.
