November 28, 2018: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), also known as TPP11 or TPP-11, is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The CPTPP will go into effect on 30 December 2018 for the initial six signatories: Mexico, Japan, Singapore, New Zealand, Canada, and Australia, and on 14 January 2019 for Vietnam.
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This new free trade agreement (FTA) will bring about duty elimination for a majority of products (a range of 85 -94%) being imported into any of the listed countries. It is important to check on your specific product to ensure tariff elimination and/or a reduction of duties.
In addition to greater market access, this agreement will enhance the manufacturing sectors in many of the countries by having the ability to source components/parts of the listed countries and declaring the product on rules of origination to be known as "originating content".
Click here for the full text of the agreement.
Will other countries be joining in the future? There has been much speculation and many discussions about the possibility of other countries joining this FTA. However, the first eleven will need to set up their processes, systems, and education to ensure that all benefits are understood and in place before any additional countries are brought into the fold.
Should you have any questions about the CPTPP, please reach out to the BDP Compliance Team.
Source: BDP International