[KITA News] CPTPP, approves U.K. membership application

                                                        

CPTPP, approves U.K. membership application

CPTPP, approves U.K. membership application...

Objection raised over Chinese membership application

 

 

 

The members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) have officially approved the new membership application of the U.K., while they drew the line on other applicant nations such as China and Taiwan, stating that “high standards” must be met in regard to application procedure.

 

According to reports on July 16 (local time) by Reuters, Bloomberg, Kyodo, etc., at the regular meeting held in Auckland, New Zealand, CPTPP member states officially approved the application of the U.K., and conducted a discussion on other countries that had submitted their applications.

 

In the joint statement announced after the meeting, member states revealed that they were collecting information to see if the applicant countries could satisfy the “high standards” of the CPTPP.

 

In the statement, member nations said that “In consideration of the trade participation experiences (of the applicant nations), we have launched an information gathering process in order to investigate whether the applicant nation’s economy can satisfy the high standards of the CPTPP”.

 

Moreover, they added that “We continue to discuss how we can collectively conduct the application process by reflecting all of our interests and maintaining high standards.”

 

Damien O’Connor, New Zealand’s Trade Minister that headed that day’s meeting, remarked at a press conference that there was no schedule planned on when the decisions regarding qualifications for member application would be made.

 

Minister O’Connor added that the application for membership was a “complex issue”, and that on that day’s meeting, there were no discussions on the membership application of individual countries.

 

According to Reuters, if processed according to the order of application, China is next, but there are many barriers including “satisfaction of conditions.”

 

The CPTPP has a high level of tariff eradication standards in the trading of goods. In addition, it includes provisions regarding technology barriers, investment, services, IPR and e-commerce.

 

The CPTPP, which is a multilateral Free Trade Agreement established among the countries of the Asia-Pacific region, lowers or eliminates tariffs to a large extent, and also demands strong commitments to the opening of the services and investment markets. In addition, there are provisions regarding technology barriers, IPR, e-commerce and foreign company protection.

 

In this regard, Bloomberg noted that, in view of the relationship of tensions involving existing member states such as Japan, that led the CPTPP, as well as Australia, and next year’s chair nation Canada, opinions will be divided over the application of China.

 

Countries can become a member of the CPTPP only with the unanimous approval of all existing member states.

 

Kyodo News reported that Malaysia, Singapore and Vietnam are supportive of China’s application, but that Japan and Australia are careful, saying that China has exhibited a high-handed attitude towards its trade counterparts.

 

The CPTPP was derived from the Trans-Pacific Partnership (TPP), an economic community pursued by the U.S. to inhibit the expansion of Chinese power in the Asia-Pacific region during the term of former President Barack Obama.

 

His successor former President Donald Trump announced the termination of the TPP in 2017, as stated in his campaign pledge, but the remaining 11 countries ？ Japan, Canada, Australia, New Zealand, Mexico, Chile, Peru, Malaysia, Vietnam, Singapore and Brunei ？ joined together to effectuate the CPTPP in 2018.

 

China applied for CPTPP membership in 2021, while Taiwan, Ecuador, Costa Rica, Uruguay and Ukraine submitted their membership applications. Korea is also pursuing CPTPP membership.

On the other hand, at this recent meeting, the application of the U.K., which was agreed upon in March, was officially approved, and a signing ceremony for the membership application protocol was conducted. As a result, there are now a total of 12 member states in the CPTPP.

 

This is the first time for an increase in the number of member states since the CPTPP’s launch in 2018. It is also the first time that a country which is not in the Asia Pacific region has become a member.

 

The U.K. submitted an application for membership in 2021, and has now become a member of the CPTPP in two years. From 2H of 2024, when the ratification procedure of each of the member states become complete, the U.K. can exercise voting rights within the CPTPP, and receive benefits from the agreement, according to DPA Communications.

 

With the joining of the U.K. the GDP of CPTPP member nations, which used to take up 12%, now take up 15% of the world’s GDP.

 

Kemi Badenoch, U.K. Secretary for Business and Trade who participated in the signing ceremony, said that by joining the CPTPP, a market with a population size of 500 million has been opened, and this shall “greatly invigorate U.K. businesses.”

 

(Provided by Yonhap News)

By - KITA.Net (http://kita.org/about/newsView.do?id=&no=2798&searchWrd=&pageIndex=1)