On 8 March 2018 in Santiago, Chile, the ministers of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam signed the text of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Even with the sudden withdrawal of the United States from the original agreement in January 2017, the CPTPP still represents more than 13% of the world's Gross Domestic Product (GDP).
After the United States' withdrawal from the Trans-Pacific Partnership (TPP) originally signed in 2016, the remaining eleven countries decided to go on with such agreement. This was made through the signature of a new agreement, the CPTPP, which incorporates the full contents of the original TPP, exception made of 22 provisions that were suspended. The provisions that were suspended are included in the following chapters of the agreement: Intellectual property, customs administration, investment, cross-border trade in services, financial services, telecommunications, environment, transparency and anticorruption.
Once in force, the CPTPP will grant Mexico preferential access to Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam, countries with which Mexico did not have trade agreements; while it will increase the previously granted preferences with countries with which it already has trade agreements, i.e., Canada, Chile, Japan and Peru.
The texts of the agreement can be found in the following links[i]
- Text of the CPTPP and its annex with the list of suspensions (Spanish version)
- Explanatory Note of the list of suspension (Spanish version)
- Original text of the TPP (English version)
- Parallel agreements to the TPP (English version)
- Bilateral instruments to the TPP (Spanish version)
The next step is the ratification of the agreement by each country, in accordance with their internal procedures.
In order for the CPTPP to become effective, at least 6 of the signatory countries must notify their ratification. Once this happens, the CPTPP will become effective after 60 days.
Baker McKenzie has a team that can assist you in any of the signatory countries. Likewise, if you need assistance regarding the duty preferences to be granted to your products once the CPTPP becomes effective and the requirements to be entitled to claim those preferences, please do not hesitate to contact us.
[i] Links to the microsite referring to TPP in the website of the Ministry of Economy