Comprehensive and Progressive Agreement for Trans-Pacific Partnership

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signed in 2018, is a high-standard trade agreement among 11 Asia-Pacific countries. It aims to promote free trade, investment, and economic integration across the region, covering areas such as goods, services, intellectual property, labor, and environmental standards.
Table of Contents

1. General Information

Full name (Vietnamese): Hiệp định Đối tác Toàn diện và Tiến bộ xuyên Thái Bình Dương.

Abbreviation (English): CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).

Participating Members: CPTPP is an agreement among 11 original member countries:

  • Asia & Oceania: Vietnam, Japan, Singapore, Brunei, Malaysia, Australia, New Zealand.
  • Americas: Canada, Mexico, Peru, Chile.
  • Newest member: The United Kingdom (signed the accession agreement in July 2023, bringing the total 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.

2. Scope and Key Commitments

The CPTPP is considered a “next-generation” FTA due to its broad scope and deep level of commitments, covering even “non-traditional” trade issues.

The Agreement consists of a Preamble and 30 Chapters, which can be categorised into three main groups: Market Access, Trade Rules, and Institutional/Related Issues.

I. General Provisions

ChapterTitleMain Content
1Initial Provisions and General DefinitionsDefines the scope; objectives; and key terms used in the Agreement.
27Administrative and Institutional ProvisionsEstablishes the CPTPP Commission and outlines its operational structure.
28Dispute SettlementSets up mechanisms for resolving disputes between member governments.
29Exceptions and General ProvisionsCovers exceptions related to national security; balance of payments; and other general matters.
30Final ProvisionsRegulates accession; entry into force; withdrawal; and amendment procedures.

II. Market Access Chapters (Goods, Services, Investment)

ChapterTitleMain Content
2National Treatment and Market Access for GoodsElimination and reduction of tariffs and non-tariff barriers.
3Rules of Origin and Origin ProceduresEstablishes criteria and methods for determining the origin of goods.
4Textiles and ApparelSpecific rules for the textile sector (e.g.; the “yarn-forward” rule).
5Customs Administration and Trade FacilitationEnsures transparency and simplification of customs procedures.
9InvestmentProvides investment protection and treatment standards for foreign investors.
10Cross-Border Trade in ServicesCommits to fair treatment and market access for service providers.
11Financial ServicesContains specific provisions for banking; insurance; and securities sectors.
12Temporary Entry for Business PersonsFacilitates the movement of business personnel.
13TelecommunicationsEstablishes competition and anti-monopoly rules in telecommunications.
14Electronic CommerceEnsures cross-border data flows and personal data protection.
15Government ProcurementPromotes transparency and fairness in public procurement processes.

III. Rules and Standards Chapters (Next-Generation Provisions)

ChapterTitleMain Content
6Trade RemediesProvides measures such as anti-dumping; countervailing; and safeguard actions.
7Sanitary and Phytosanitary Measures (SPS)Ensures food safety and protection of human; animal; and plant health.
8Technical Barriers to Trade (TBT)Reduces trade barriers caused by differing standards and technical regulations.
16Competition PolicyProhibits anti-competitive practices and encourages policy cooperation.
17State-Owned Enterprises and Designated MonopoliesEnsures fair competition between SOEs and private enterprises.
18Intellectual PropertyProtects copyrights; trademarks; patents; and other IP rights.
19LaborDefines labor rights; freedom of association; and bans on forced and child labor.
20EnvironmentPromotes environmental protection and bans illegal wildlife trade.

3. Reference Materials and Official Sources

Full Text of the FTA: Official Source (Ministry of Industry and Trade – MOIT): The MOIT is Vietnam’s focal agency for CPTPP implementation.

  • The full text of the CPTPP (in both Vietnamese and English) includes 30 chapters, tariff schedules, service and investment commitments, and related documents.
  • Link: 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/
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