What Does CPTPP Stand For?
The CPTPP stands for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. As of February 2018, CPTPP is a new free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Who Has Ratified CPTPP?
The countries that have ratified the CPTPP includes:
- Mexico | June 28, 2018
- Japan | July 6, 2018
- Singapore | July 19, 2018
- New Zealand | Oct 25, 2018
- Canada | Oct 29, 2018
- Australia | Oct 31, 2018
Who Has Not Ratified?
- Vietnam | Expected to ratify in November
- Peru | Expected before 2019
Who Can Use The CPTPP Agreement?
The agreement can only be used by the countries that have ratified the agreement.
For example, since Canada is ratified but Vietnam is not, Canada and Vietnam are not able to use the agreement with each other until Vietnam ratifies and the 60 days has passed.
When Was It Signed?
The CPTPP was signed on March 8th, 2018, in Santiago, Chile.
When Will CPTPP Come Into Force?
The CPTPP will come into force on Dec 30th, 2018, which would mean 2018 is year 1 and 2019 is year 2. Which means faster duty reductions. The “years” for the agreement run from Jan 1 – Dec 31.
When Does It Start?
Since 6 of the countries have ratified, CPTPP will start on Dec 30th, 2018. For all of the countries that have ratified, they will be able to start using the agreement on Dec 30th. For the rest of the countries who have yet to ratify, the agreement will come into force for them 60 days after that country ratifies and deposits as well.
What Are The Benefits?
Approximately 98% of the customs duties will be removed at the time of final implementation. Once CPTPP comes into force, many commodities will be duty free upon entry. The elimination of tariffs will depend on the staging category. Some items will have the duty reduced faster than others. A few commodities will not be reduced at all.
Are You Prepared For The Agreement?
The CPTPP agreement will affect the world of trade. Are you prepared for the new CPTPP agreement? You can learn about the rules of origin, regional value content, de minimis, and more from an expert trade advisor from Pacific Customs Brokers. Contact one of our experienced trade advisors today for your trade edge.