Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Recently the United Kingdom has agreed to join the ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)’.
- CPTPP is a Free Trade Agreement (FTA). In 2018, an agreement was reached between 11 countries in Santiago, Chile.
- These 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
- All 11 countries of the CPTPP are members of the Asia-Pacific Economic Cooperation (APEC).
- The United Kingdom will be the 12th member of the CPTPP after joining it. Along with this, it will also be the first country in Europe to join it since its establishment. CPTPP was established to replace TPP after the United States withdrew from the Trans-Pacific Partnership (TPP) in 2017.
Importance of CPTPP –
- It is a business group representing the world’s 500 million consumers and 13.5 percent of global GDP.
- This group ensures the protection of the environment and labor rights. These rights may be enforced by dispute resolution.
- The CPTPP eliminates tariffs and lowers barriers to entry on 98 percent of goods exported within member countries.
- It offers solutions to ’21st century’ business and investment issues.
- These include creating rules against corruption, reducing unfair competition by state-owned enterprises, and ensuring a liberal environment for electronic commerce.
Why is India not a part of CPTPP?
- The CPTPP seeks to harmonize everything from labor and environmental standards to intellectual property regulations. This is not in the interest of a developing country like India.
- It requires extensive economic concessions by the participating country. This condition can adversely affect India’s trade balance.
Source – The Hindu
