Global Governance

11 countries have signed up to the Trans-Pacific Partnership

Representatives of members of Trans-Pacific Partnership (TPP) trade deal: Brunei's Acting Minister for Foreign Affairs Erywan Dato Pehin, Chile's Foreign Minister Heraldo Munoz, Australia's Trade Minister Steven Ciobo, Canada's International Trade Minister Francois-Phillippe Champagne, Singapur's Minister for Trade and Industry Lim Hng Kiang, New Zealand's Minister for Trade and Export Growth David Parker, Malaysia's Minister for Trade and Industry Datuk J. Jayasiri, Japan's Minister of Economic Revitalization Toshimitsu Motegi, Mexico's Secretary of Economy Ildefonso Guajardo Villarreal, Peru's Minister of Foreign Trade and Tourism Eduardo Ferreyros Kuppers and Vietnam's Industry and Trade Minister Tran Tuan Anh, pose for an official picture after the signing agreement ceremony in Santiago, Chile March 8, 2018. REUTERS/Rodrigo Garrido - RC150C1FB650

Eleven countries have signed a Asia-Pacific trade agreement. Image: REUTERS/Rodrigo Garrido

Dave Sherwood
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Global Governance?
The Big Picture
Explore and monitor how Global Governance is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

Global Governance

Eleven countries including Japan and Canada signed a landmark Asia-Pacific trade agreement without the United States on Thursday in what one minister called a powerful signal against protectionism and trade wars.

The deal came as U.S. President Donald Trump vowed earlier in the day to press ahead with a plan to impose tariffs on steel and aluminum imports, a move that other nations and the International Monetary Fund said could start a global trade war.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will reduce tariffs in countries that together amount to more than 13 percent of the global economy - a total of $10 trillion in gross domestic product. With the United States, it would have represented 40 percent.

"Today, we can proudly conclude this process, sending a strong message to the international community that open markets, economic integration and international cooperation are the best tools for creating economic opportunities and prosperity," said Chilean President Michelle Bachelet.

Heraldo Munoz, Chile's minister of foreign affairs, said he expected Chile's trade with China, its top trading partner, to continue growing alongside trade with CPTPP countries.

Even without the United States, the deal will span a market of nearly 500 million people, making it one of the world's largest trade agreements, according to Chilean and Canadian trade statistics.

The original 12-member agreement, known as the Trans-Pacific Partnership (TPP), was thrown into limbo early last year when Trump withdrew from the deal three days after his inauguration. He said the move was aimed at protecting U.S. jobs.

The 11 remaining nations finalized a revised trade pact in January. That agreement will become effective when at least six member nations have completed domestic procedures to ratify it, possibly before the end of the year.

"We are very hopeful like others that we will see the CP TPP coming into effect about the end of the year or shortly thereafter," said Australia Trade Minister Steven Ciobo.

'The way forward'

The revised agreement eliminates some requirements of the original TPP demanded by U.S. negotiators, including rules to ramp up intellectual property protection of pharmaceuticals. Governments and activists of other member nations worry the changes will raise the costs of medicine.

The final version of the agreement was released in New Zealand on Feb. 21. The member countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

"We're proud ... to show the world that progressive trade is the way forward, that fair, balanced, and principled trade is the way forward, and that putting citizens first is the way forward for the world when it comes to trade," Canadian Trade Minister Francois-Phillippe Champagne said.

In January, Trump, who also has threatened to pull the United States out of the North American Free Trade Agreement, told the World Economic Forum in Switzerland that it was possible Washington might return to the TPP pact if it got a better deal. However, New Zealand's trade minister said that was unlikely in the near term, while Japan has said altering the agreement now would be very difficult.

Have you read?

On Thursday, Munoz said CPTPP was not an agreement against anyone and several governments had said they want to join it.

Trump vowed on Thursday to impose a 25 percent tariff on steel imports and 10 percent tariff on aluminum imports, although he said there would be exemptions for NAFTA partners Mexico and Canada.

He announced the plan for tariffs last week, rattling financial markets.

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Related topics:
Global GovernanceEconomic Progress
Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

The World Economic Forum: A Swiss success story

Selina Hänni and Micol Lucchi

January 17, 2024

1:45

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum