The View | With the US absent, China should seize the day and join the CPTPP to promote a more integrated trading order in Asia
- Since the CPTPP’s launch, the massive trade pact has been beneficial to its members, and China would be no different
- Other members have also shown interest in Beijing joining, which would be one step closer to a free-trading Asia-Pacific
Covering a population of over 500 million people and total gross domestic product of US$10.57 trillion, the current 11-member CPTPP is the largest free trade area in the Asia-Pacific region and the third-largest in the world. The promise of the CPTPP is reflected by the list of countries that have signalled interest in joining, including Colombia, Indonesia, South Korea, Thailand and Britain. If China were to join, the FTA would cover nearly 30 per cent of global GDP.
Since the CPTPP came into force at the start of this year, its benefits are already showing. For example, Vietnam, despite facing the challenge of meeting the CPTPP’s high standards, has seen no serious harm from opening up and greatly reducing tariffs. On the contrary, it has one of the top winners from the agreement so far.
Trade between Vietnam and the other 10 members increased rapidly under CPTPP. Vietnam customs data shows that in the first seven months of this year, Vietnam enjoyed a trade surplus of US$1.8 billion, over half of which came from CPTPP trade. Exports to Mexico are up 35.6 per cent, exports to Malaysia are up by nearly 22 per cent and exports to Canada increased by nearly 14 per cent. Vietnam's textile industry and infrastructure development have also benefited from CPTPP.