The 11 countries participating in the CPTPP include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The signing of the trade deal shows the great determination and efforts of the 11 member countries, especially Japan, to conclude the comprehensive negotiation on a new generation, high standard and balanced free trade agreement after the US withdrew from the agreement.
The pact is expected to stimulate economic growth, create jobs, improve people's living standards, facilitate trade development, and augment economic cooperation among countries in the Asia-Pacific region, especially when the globalization process is still facing numerous difficulties and growing protectionism in the world.
The 11 CPTPP economies account for about 13% of the global GDP.
According to Minister Tran Anh Tuan, Vietnam has committed to market opening and trade facilitation and liberalization towards removing non-tariff barriers. He underlines that through the agreement, competitiveness of the national economy as well as businesses will be likely improved and the flows of foreign direct investment (FDI) may grow further.
The Ministry of Industry and Trade has mapped out specific communications projects to help businesses and people grasp opportunities presented by the deal, he says.
The pact is expected to create one of the largest trading blocks in the world across Asia-Pacific and the Americas reaching 463 million people and a combined GDP of US$10 trillion equal to 13% of the global GDP.
The deal covers many key commitments relating to non-tariff barriers, services, and investment among others.
“All remaining countries have affirmed determination to follow the trade pact even when one country withdrew. The characteristics and quality of the agreement are shown in two words “comprehensive” and “progressive”, which 11 ministers of TPP have agreed on and considered the common goal of the deal. So the name Comprehensive and Progressive Agreement for Trans-Pacific Partnership received a high consensus," Tuan Anh says.
Japanese Economic Revitalization Minister Toshimitsu Motegi says,"Asia-Pacific is one of the world’s major economic centers. We hope that a new rule will be set up for the region and all commitments and participating countries will address challenges.”
The CPTPP is set to become effective early next year, delivering benefits to all members. For Vietnam, the deal will bolster exports to major markets like Japan, Australia, Canada, and Mexico, and also attract foreign investment. It will help to reform institutions and create a transparent investment and trading environment in participating countries.
"The most important factor is that each member needs a comprehensive action plan to prepare for actualizing its commitments. We will submit such an action plan to the government so that as soon as the agreement becomes effective, the plan will involve the government, business community, localities, associations, and people. Second, it’s necessary to review the domestic legal framework and legalize what the country has committed under the agreement. Third is to specify missions of each agency so that it can proactively participate in the agreement," Tuan notes.
After the CPTPP is signed, it will experience legal processes in each member state to take effect.
After the US left the Trans-Pacific Partnership (TPP), the predecessor of the CPTPP, in 2017, the remaining 11 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam) concurred to maintain the deal and rename it CPTPP.
Earlier, the Trans-Pacific Partnership (TPP) was signed in February, 2016, covering 12 participating countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.