CPTPP

A high-standard Trans-Pacific free trade agreement reconstituted by 11 countries after the U.S. withdrawal; after taking effect in 2018, it became a 12-country framework with the UK's accession.

CPTPP

Overview

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is a multilateral free trade agreement (FTA) signed by 11 countries in Santiago, Chile in March 2018 and entered into force on December 30 of the same year. It is an agreement reconstituted by the remaining 11 countries of the Trans-Pacific Partnership (TPP) after the United States withdrew, with some provisions demanded by the United States suspended. It is evaluated as a '21st-century high-standard trade agreement' that goes beyond tariff elimination to cover services, investment, intellectual property, labor, environment, and digital trade norms.

Key Contents

Negotiation Process and Launch

  • Started in 2005 as the TPP (four countries: Singapore, Chile, New Zealand, and Brunei)
  • U.S. announced participation in 2008; 12 countries signed in February 2016 (Auckland, New Zealand)
  • Trump administration notified U.S. withdrawal in January 2017
  • 11 countries signed on March 8, 2018; entered into force on December 30, 2018

Member Countries

The original member countries are 11: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. With the signing of the UK's accession protocol in July 2023 and its entry into force on December 15, 2024, it became a 12-country framework.

Major Norms

  • Tariff elimination: Tariffs on more than 95% of trade among member countries are eliminated in stages. Exceptions exist, such as some Japanese agricultural products.
  • Rules of origin: Promotes regional supply chain integration through regional value content criteria and cumulation provisions.
  • Services and investment: Openness through a negative list approach, including investor-state dispute settlement (ISDS) procedures.
  • Intellectual property: Provisions such as extension of copyright protection periods and pharmaceutical data exclusivity (with some reservations).
  • Digital trade: E-commerce, cross-border data movement, source code protection, etc.
  • Labor and environment: Obligations to implement ILO core conventions and environmental protection.
  • State-owned enterprises: Competitive neutrality disciplines (with some reservations for Malaysia, Vietnam, etc.).
  • Government procurement, competition policy, and cooperation: Includes transparency and capacity-building provisions.

Provisions Suspended Due to U.S. Withdrawal

The 22 provisions inserted at the request of the United States—including those on pharmaceutical intellectual property, some investment-related matters, and cultural exceptions—remain suspended. This is sometimes interpreted as leaving room for reactivation if the United States returns in the future.

Accession Procedure and Expansion

New accession requires unanimous consent of existing members and a working group review. The UK applied in February 2021, concluded negotiations in March 2023, signed in July 2023, and entered into force on December 15, 2024. China (September 2021), Taiwan (September 2021), Ecuador, Costa Rica, Uruguay, Ukraine, and others have applied for accession.

Korea's Issues

In December 2021, the Korean government officially announced its policy to pursue accession, but as of 2024 it has not joined. The main issues are (1) the impact on domestic industries from further opening of agricultural and fishery products, (2) the practical FTA effect with Japan and problems of fishery product imports, (3) concerns over infringement of policy autonomy due to ISDS, and (4) the burden of implementing labor and environmental norms. The government faces the task of conducting impact analysis and social discussion while carrying out the National Assembly ratification procedure.

Latest Trends

  • UK accession in force (December 15, 2024): With the launch of the 12-country framework, a bloc representing about 15% of global GDP in nominal terms was formed. The UK government estimated that accession would add about 0.08% to long-term GDP.
  • Debate over China's accession review: At the CPTPP Commission meeting held in Vancouver, Canada, in 2024, the issue of reviewing China's accession application was discussed, but differences persist between countries such as Australia and Malaysia and countries such as Canada and Mexico.
  • Changes in the trade environment: Amid strengthened U.S. tariff policies and the weakening of WTO functions, CPTPP is emerging as an alternative trade platform, and its role as a standard for digital trade norms is also expanding.
  • Re-emergence of discussion in Korea: In 2025, the need for accession, supplementary measures for agriculture and fisheries, and the need for parallel National Assembly discussion are being highlighted again.

Related Topics

  • [[TPP]]
  • [[자유무역협정]]
  • [[RCEP]]
  • [[세계무역기구]]
  • [[통상정책]]