The implementation of CPTPP:
Vietnam ratifies CPTPP November 12, 2018: On Monday this week, Vietnam ratified the CPTPP. The free trade agreement was voted by 96.7% of the National Assembly. As a result, Vietnam becomes the 7th party that implements the agreement. Mexico was the first country that signed the contract, followed by Japan, Singapore, Canada, New Zealand, Australia and Vietnam. The CPTPP agreement will probably come into force by the beginning of 2019 and affects the ratification of the free trade agreement between the EU and Vietnam positively.
What is CPTPP?
The Trans-Pacific Partnership (TPP) was an organised free trade agreement between Australia, Brunei, Chile, Japan, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US at first. Following the withdrawal of the US from TPP on January 24, 2017, the remaining parties decided to implement the agreement without the participation of the US in May 2017. However, the agreement was renegotiated between May 2017 and November 2017 and successfully completed by the Asia-Pacific Economic Cooperation (APEC) summit in Vietnam. The Trans-Pacific Partnership was renamed as “Progressive Agreement for Trans-Pacific Partnership” (CPTPP).
On March 8, 2018, Chile signed the agreement successfully. The free trade agreement includes approximately 13,5% of the global economic power which is corresponding to ten trillion US Dollar. Currently, around 480 million people are living in the new domestic market.
Ratification process of CPTPP
According to the CPTPP contract, the agreement will enter into force, once 50% or six of the eleven parties ratified the agreement. The ratification process is expected to progress quickly.
The impact of CPTPP on the German industry
CPTPP is a free trade agreement of high quality which includes 15% of the global world trade, as well as more than 13% of the global economy. According to that, the agreement also affects the global value chains. Thus, the agreement is also a relevant issue for German firms, since many of them already operate and invest in countries of the CPTPP. Just as the Asian members, German firms therefore, may exploit the agreement under specific conditions.