What is the CPTPP and which countries are members?
The CPTPP, or Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is a high-standard trade agreement that initially involved 11 Asia-Pacific nations. Its full Vietnamese name is Hiệp định Đối tác Toàn diện và Tiến bộ xuyên Thái Bình Dương. The original 11 member countries include Vietnam, Japan, Singapore, Brunei, Malaysia, Australia, New Zealand from Asia & Oceania, and Canada, Mexico, Peru, Chile from the Americas. The United Kingdom joined in July 2023, expanding the agreement to 12 members.
| Event | Date | Remarks |
| Signing of the original TPP Agreement | February 2016 | Signed by 12 countries, including the United States. |
| Signing of the CPTPP Agreement | March 8, 2018 | Signed in Santiago, Chile, by 11 countries after the U.S. withdrawal. |
| Entry into force (for first 6 countries) | December 30, 2018 |
When six countries (Mexico, Japan, Singapore, Canada, Australia, New Zealand) completed ratification.
|
| Entry into force for Vietnam | January 14, 2019 |
Vietnam became the seventh country to ratify and implement the Agreement. |
Negotiation Background and Reasons for Establishing the FTA
Background: The CPTPP originated from the Trans-Pacific Partnership (TPP), which was negotiated among 12 countries. In January 2017, the United States announced its withdrawal from the TPP.
Reasons for forming CPTPP (TPP-11):
The remaining 11 countries agreed to preserve and promote the trade and investment liberalisation commitments achieved under the TPP. They decided to suspend 20 groups of obligations (mainly in chapters on Intellectual Property and Government Procurement) to maintain balance in rights and obligations after the U.S. withdrawal.
Objectives:
Create a Major Free Trade Area: Build a next-generation, high-standard, and comprehensive free trade bloc covering the Asia-Pacific region.
Liberalisation: Eliminate nearly all tariffs and non-tariff barriers on trade in goods, services, and investment among members.
Set High Standards: Introduce modern trade rules on e-commerce, state-owned enterprises, labor, environment, and intellectual property, fostering a more transparent and competitive business environment.
What does the CPTPP cover and what are its main goals?
The CPTPP is recognized as a “next-generation” Free Trade Agreement (FTA) because of its extensive scope and profound commitments, which extend to “non-traditional” trade matters. Its primary goals are to promote free trade, investment, and economic integration across the region by eliminating tariffs and non-tariff barriers. The agreement is structured with a Preamble and 30 Chapters, broadly categorized into Market Access, Trade Rules, and Institutional/Related Issues, setting modern, comprehensive rules for a transparent and competitive business environment.
I. General Provisions
| Chapter | Title | Main Content |
|---|---|---|
| 1 | Initial Provisions and General Definitions | Defines the scope; objectives; and key terms used in the Agreement. |
| 27 | Administrative and Institutional Provisions | Establishes the CPTPP Commission and outlines its operational structure. |
| 28 | Dispute Settlement | Sets up mechanisms for resolving disputes between member governments. |
| 29 | Exceptions and General Provisions | Covers exceptions related to national security; balance of payments; and other general matters. |
| 30 | Final Provisions | Regulates accession; entry into force; withdrawal; and amendment procedures. |
II. Market Access Chapters (Goods, Services, Investment)
| Chapter | Title | Main Content |
|---|---|---|
| 2 | National Treatment and Market Access for Goods | Elimination and reduction of tariffs and non-tariff barriers. |
| 3 | Rules of Origin and Origin Procedures | Establishes criteria and methods for determining the origin of goods. |
| 4 | Textiles and Apparel | Specific rules for the textile sector (e.g.; the “yarn-forward” rule). |
| 5 | Customs Administration and Trade Facilitation | Ensures transparency and simplification of customs procedures. |
| 9 | Investment | Provides investment protection and treatment standards for foreign investors. |
| 10 | Cross-Border Trade in Services | Commits to fair treatment and market access for service providers. |
| 11 | Financial Services | Contains specific provisions for banking; insurance; and securities sectors. |
| 12 | Temporary Entry for Business Persons | Facilitates the movement of business personnel. |
| 13 | Telecommunications | Establishes competition and anti-monopoly rules in telecommunications. |
| 14 | Electronic Commerce | Ensures cross-border data flows and personal data protection. |
| 15 | Government Procurement | Promotes transparency and fairness in public procurement processes. |
III. Rules and Standards Chapters (Next-Generation Provisions)
| Chapter | Title | Main Content |
| 6 | Trade Remedies | Provides measures such as anti-dumping; countervailing; and safeguard actions. |
| 7 | Sanitary and Phytosanitary Measures (SPS) | Ensures food safety and protection of human; animal; and plant health. |
| 8 | Technical Barriers to Trade (TBT) | Reduces trade barriers caused by differing standards and technical regulations. |
| 16 | Competition Policy | Prohibits anti-competitive practices and encourages policy cooperation. |
| 17 | State-Owned Enterprises and Designated Monopolies | Ensures fair competition between SOEs and private enterprises. |
| 18 | Intellectual Property | Protects copyrights; trademarks; patents; and other IP rights. |
| 19 | Labor | Defines labor rights; freedom of association; and bans on forced and child labor. |
| 20 | Environment | Promotes environmental protection and bans illegal wildlife trade. |
Where can I find official CPTPP documents and implementation guides?
For official CPTPP documents and comprehensive implementation guidance, the Ministry of Industry and Trade (MOIT) serves as Vietnam’s primary focal agency. The full text of the CPTPP, available in both Vietnamese and English, encompasses all 30 chapters, detailed tariff schedules, and commitments related to services and investment, along with other relevant documents. You can access these resources directly through the Vietnam FTA Portal (MOIT) – CPTPP section.
Implementation Guidelines:
Vietnam FTA Portal (MOIT): Provides chapter summaries, key commitments, and tariff reduction schedules for Vietnam and partners. Website: https://vntr.moit.gov.vn/
Ministry of Finance (General Department of Customs):
- Government decrees on Vietnam’s special preferential import tariff schedules under CPTPP (latest versions for current periods).
- Guidance on customs procedures and certificates of origin under CPTPP. Website: https://www.customs.gov.vn/
- WTO and Integration Center (VCCI): Publishes detailed handbooks guiding enterprises on CPTPP implementation, especially Rules of Origin (C/O). Website: https://wtocenter.vn/
