On December 30th, 2018 the first phase of the the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) came into effect with six countries; New Zealand, Australia, Canada, Japan, Mexico and Singapore. Vietnam has now also completed ratification and so will follow within weeks, with Chile, Peru, Brunei, and Malaysia set to ratify in the coming months. When completed this trade deal will cover 14% of global GDP.
The trade deal saw 90% tariffs removed in the first six countries immediately. As well non-tariff enablers such as pre-arrival customs clearance and self-certification of origin will reduce administration and compliance costs for businesses. Research by the Peterson Institute has CPTPP boosting trade for members by 6% and adding 1% to real incomes as of 2030.
This should be a game changer as the CPTPP trade deal opens new opportunities and help protect member nations against the impact of a US-China trade war.