On March 8, 2018, 11 Asia-Pacific countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP or TPP-11). Formerly known as the Trans-Pacific Partnership (TPP), the CPTPP is a free trade agreement linking Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The CPTPP will not be finalized until it is ratified by at least six countries. The agreement will take effect 60 days later.
Even with the U.S. departure from the TPP, the CPTPP still represents 13 percent of the world’s gross domestic product (GDP). The new agreement retains much of the original TPP, with the exception of 22 suspended or modified provisions from the following chapters: intellectual property, customs administration, investment, cross-border trade in services, financial services, telecommunications, environment, transparency, and anti-corruption.
What does this mean for Mexico?
Through the CPTPP, Mexico will have preferential access to consumers in a fast-growing market. The agreement will strengthen Mexico’s ties with Canada, Chile, Japan, and Peru and will grant access to Australia, Brunei, Malaysia, New Zealand, Singapore, and Vietnam.
For more information on how CPTPP may affect your business and investments, contact us today.