Q2: How have trade flows between Member States changed since the CPTP came into force? A2: The volume of trade between CPTP member states changed last year, even between the three major economies of Australia, Canada and Japan. On the one hand, Australia has experienced a trade boom with CPTPP partners. In 2018, trade with Japan increased by 19.1%, with Malaysia by 16.5% and with Vietnam by 13.3%, surpassing annual trade growth of 11.6%. Exports of goods increased by 25.2% compared to Japan and 25.6% in Malaysia, compared with 14.4% for the whole. In Canada, on the other hand, export growth has increased more strongly. Ottawa recorded modest export growth from all CPTPP partners, about 1 per cent, as did overall export volume growth. New Zealand, At the signing of CPTPP (external link) on March 9, 2018, presents a progressive and inclusive business approach (external link) In February 2018, Canada`s Minister of International Trade Diversification, Jim Carr, delivered a keynote address at a seminar on CPTPP – Expanding Your Business Horizons, in which companies call the agreement a bridge that makes it easier for people to share goods and services. [19] In addition, the UK government has stated that by 2019, each region and nation in the United Kingdom is exporting at least 1 billion pounds ($1.25 billion) of goods to CPTPP member countries. [71] The UK government also pointed out that British companies held almost $98 billion in investment in CPTPP countries in 2018[72] and that by 2019 the UK had traded with countries in the CPTPP free trade area worth more than 110 billion pounds ($137 billion). [73] While data for 2019 are not yet available for Australia and Canada, Japanese statistics for the first half of 2019 provide an even more recent picture. Japan recorded a widening trade deficit relative to the previous year compared to Australia, Vietnam and Canada. The overall 4.7 per cent decline in exports was overshadowed by sales to Australia of 17.9 per cent and to Canada by 10.4 per cent. On the other hand, Japanese imports from its two main trading partners, Australia and Vietnam, increased by 5.1% and 7.0% respectively compared to the first half of 2018.
These increases are particularly remarkable when there is an overall increase of 1.1% in Japan. It is clear that almost a year after their effectiveness, the economies of the CPTPP have achieved mixed results in the short term. In May 2020, Chinese Premier Li Keqiang said China was ready to consider joining the Asia-Pacific region`s largest free trade pact, the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). [82] The agreement between Australia, Canada, Japan, Mexico, New Zealand and Singapore came into force on December 30, 2018. With regard to CPTPP, the NIA was published on 21 February 2018 to help Parliament balance the costs and benefits of New Zealand`s signing of CPTPP and, on 9 March 2018, it was updated with more details on the alternative letters signed with the agreement. Q3: Are these changes in trade volume solely due to the CPTPP? On October 17, 2018, the Australian Federal Parliament passed legislation to this effect by the Senate. [26] [27] [28] Official ratification was filed on October 31, 2018. [5] This two-week gap made Australia the sixth signatory to submit ratification, and came into force 60 days later. On June 28, 2018, Mexico was the first country to end its internal ratification process of the CPTPP, with President Enrique Pea Nieto declaring: “With this next-generation agreement, Mexico is diversifying its economic relations with the world and demonstrating its commitment to openness and free trade.” [20] [21] A3: Although the CPTPP has the potential to influence long-term trade relations between its 11 Member States, it is difficult to say exactly what influence it had on last year`s business models.