Friday 09 March, 2018

CPTPP – In the early hours of March 9 (Hanoi time), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was signed in Santiago, Chile, under the chairmanship of Chilean President Michelle Bachelet.

CPTPP – Representatives of 11 countries participated: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Minister of Industry and Trade Tran Tuan Anh, head of the Vietnamese delegation, attended the signing ceremony.

Following the ceremony, Chilean President Michelle Bachelet stated that the signing of the CPTPP represented a commitment to integration and a clear signal against protectionism, according to the Vietnam News Agency in Chile.

According to the Chilean President, the establishment of the CPTPP after tireless efforts by all participating countries sends a message to countries seeking to restrict trade and reduce development opportunities for others.

The CPTPP free trade agreement was launched one year earlier after the United States withdrew from the Trans-Pacific Partnership (TPP). Fundamentally, the CPTPP retained the content of the original version, comprising around 8,000 pages, while suspending the implementation of 22 provisions mainly related to intellectual property in order to ensure balance among the 11 member countries.

The official signing of the CPTPP was expected to facilitate economic growth, create more jobs, reduce poverty and improve living standards in member countries. With its market-opening commitments, the CPTPP sends a strong message against the prevailing protectionist trend and promises economic benefits for all 11 countries. The agreement creates one of the world’s largest free-trade blocs, with a market of approximately 499 million people and gross domestic product of about USD 10.1 trillion, representing 13.5% of global GDP.

During the CPTPP negotiations, Vietnam made important contributions, particularly during the APEC 2017 Economic Leaders’ Week held in Da Nang in November 2017 and at subsequent meetings leading to completion of the agreement. This reflected Vietnam’s efforts to promote free trade and economic and commercial integration across Asia, the Americas and Oceania.

Speaking to the press on the sidelines of the signing ceremony, Minister of Industry and Trade Tran Tuan Anh said that with the CPTPP signed, member countries would gain not only immediate trade benefits from removing tariff barriers and barriers in other areas, but more fundamentally the agreement would create new drivers for each country’s economic, political and social development.

Minister Tran Tuan Anh said all member countries highly valued the quality of this new-generation free trade agreement even though the major US economy was no longer participating.

Regarding the significance of CPTPP participation for Vietnam, the Minister emphasized that, as an independent and sovereign country in its foreign political and economic activities, Vietnam’s signing of the CPTPP was a concrete step in implementing its strategy of multilateralization and diversification of cooperative relationships. In a complex global environment, although trade liberalization remained the main trend, clear signs of trade protectionism and isolationism were also emerging and adversely affecting globalization.

According to Minister Tran Tuan Anh, participation in the CPTPP demonstrated Vietnam’s continued determination and consistency in implementing its policy and strategy of proactive and extensive integration. Drawing on experience and achievements from opening the economy and actively pursuing integration, Vietnam had a basis for confidence in its future integration strategy.

The CPTPP can therefore be regarded as a new level and stage in Vietnam’s process of regional and international integration.