Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP )

GS 3 – Economy 

It’s a trade agreement that aims to reduce trade barriers and promote economic cooperation among 11 countries. It was signed in 2018 after the U.S. withdrew from the earlier TPP (Trans-Pacific Partnership).

Member Countries

The 11 countries are:

• Australia
• Brunei
• Canada
• Chile
• Japan
• Malaysia
• Mexico
• New Zealand
• Peru
• Singapore
• Vietnam

Main Goals

• Increase Trade: Reduce tariffs and trade barriers, making it easier to do business.
• Economic Growth: Strengthen economic ties between member countries.
• Global Trade: Improve global trade by promoting fair competition and protecting intellectual property.

Key Features

• Lower Tariffs: Reduces taxes on goods traded between member countries.
• Intellectual Property Protection: Stronger laws to protect patents and copyrights.
• Labor and Environment: Higher standards for workers’ rights and environmental protection.
• Dispute Resolution: Clear ways to resolve trade conflicts between countries.

Impact on India

• Opportunities: India could benefit from joining by accessing new markets, especially in Asia-Pacific.
• Challenges: India would need to open up some industries to competition, like agriculture, and adjust its laws to meet the higher standards set by CPTPP.

CPTPP vs. RCEP

• CPTPP is a broader trade agreement with countries outside of Asia like Canada and Mexico, while RCEP (Regional Comprehensive Economic Partnership) focuses mainly on Asia.
• CPTPP has stricter rules on things like intellectual property and labor rights.