Financial Institutions: CPTPP

What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?

A trade pact involving 11 countries aimed at reducing trade barriers and promoting economic cooperation.

Which countries are members of the CPTPP?

Japan, Malaysia, Vietnam, Australia, Singapore, Brunei, New Zealand, Canada, Mexico, Peru, and Chile.

What percentage of global GDP does the CPTPP cover?

About 14%, increasing to approximately 15% with the inclusion of the UK.

What is significant about the UK's membership in the CPTPP?

The UK is the first European country to join and becomes the largest economy in the pact after Japan.

Why did the U.S. withdraw from the TPP?

President Donald Trump withdrew on his first day in office in 2017, derailing the original plan.

When was the CPTPP signed?

The agreement was signed in March 2018 after renegotiation by the remaining countries.

What is one of the main functions of the CPTPP?

Member countries reduce or eliminate tariffs on most goods traded among them.

Which sector does Japan retain protection for under the CPTPP?

Japan retains protection for rice.

What are some key UK exports to CPTPP markets?

Services, whisky, dairy, and automobiles.

What will happen to tariffs on Scottish whisky going to Malaysia?

Tariffs will fall from approximately 80% to zero.

What is the estimated GDP boost for the UK from joining the CPTPP?

About £1.8 billion, or approximately 0.08%, over 10 years.

What motivated the UK to apply for CPTPP membership?

To expand global trading ties post-Brexit.

What long-term downside does the UK face post-Brexit according to the Office for Budget Responsibility?

A projected reduction in long-run productivity by about 4% compared to if the UK had remained in the EU.

What concerns do critics have regarding the UK's standards after joining the CPTPP?

There are worries that food, environment, and labor standards could be pressured to lower to compete.

Which countries have applied or shown interest in joining the CPTPP?

Costa Rica, Ecuador, Uruguay, Thailand, Philippines, and South Korea.

What is China's status regarding the CPTPP?

China applied to join in 2021, but the U.S. shows no sign of rejoining the pact.

Which countries have expressed interest in joining the CPTPP?

Costa Rica, Ecuador, Uruguay, Thailand, the Philippines, South Korea, and China.

What is a potential downside of the UK's exit from the EU mentioned in the text?

A long-run productivity reduction of 4% relative to remaining in the EU.

What is the role of the World Economic Forum in relation to the CPTPP?

To monitor and explore the impacts of the UK joining the CPTPP on global markets.