Trade Pacts Current Affairs - 2020
11 Pacific Rim countries have formally entered into Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CP TPP or TPP11 in Santiago, Chile. It is revised version of Trans-Pacific Partnership (TPP) proposed by US, that was finalized after US withdrew from it.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
TPP11 includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The combined population of these countries exceeds 500 million people and together their economies account for 13% of global gross domestic product (GDP). With US, it would have represented 40%.
It will be world’s third largest trade bloc after European Union (EU) and North American Free Trade Agreement (NAFTA). It will come into effect 60 days after six of the 11 member countries ratify the agreement domestically. It eliminates some requirements of original TPP demanded by US, including rules to ramp up intellectual property protection of pharmaceuticals.
The original 12-member agreement known as Trans-Pacific Partnership (TPP) was thrown into limbo in January 2017 when US President Trump withdrew from deal three days after his inauguration citing reason of protecting US jobs and agreement will be blow for US’s manufacturing. The TTP agreement was originally conceived as counterbalance to China’s increasing economic influence in the region. But after US withdrawal, remaining 11 countries had decided to forge ahead regardless and finalized the agreement in January 2018.