Summary:

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) strives to deepen trade liberalization in goods and services among 11 countries in the Asia-Pacific region (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). It aims to eliminate and reduce up to 98% of tariffs. However, three years after CPTPP came into effect, intra-CPTPP trade increased albeit moderately, partly due to the pandemic. 

Highlights:

• Almost all ad-valorem tariffs (i.e., the customs duty  calculated as a percentage of the value of the product) will be reduced to zero percent from 2029 onwards.
• Of all CPTPP countries, Vietnam will reduce their tariff the most, from an average of about 10.9% to almost 0% in 2028.
• In 2020, CPTPP trade declined largely due to the pandemic.
• While intra-CPTPP trade surpassed its 2019 value, CPTPP trade with non-CPTPP countries is still below the pre-pandemic level.

Article By Thi Hang BANH

Graphic By Yixuan GE