CPTPP trade agreement poised to be new powerhouse partnership in beleaguered global trade system
- Experts weigh in on how a trade deal that the United States abandoned has gradually been gaining significance as a global agreement, rather than a regional one
- Britain is looking to get in on the deal, while mainland China and Taiwan also want a piece of the pie
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CPTPP could become game changer and supplant 'out-of-date' WTO, after mainland China, Taiwan apply
One of the world’s biggest multilateral trade agreements has the potential to become a global game-changer and supplant a beleaguered world trade system, trade experts say.
That trade agreement – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – was formerly known as the Trans-Pacific Partnership (TPP) when it was the centrepiece of the United States’ strategic pivot to Asia. But not only has the agreement survived the disappointment of a US withdrawal, it has also attracted a host of non-Asia-Pacific countries that want a piece of the trade deal, thus increasing its significance as a global agreement rather than merely a regional one.
The CPTPP has manifested the “spaghetti bowl” concept, where countries cut trade deals directly with each other, thereby bypassing the WTO, the long-standing forum for the establishment of global trade rules and trade agreements, Groser said.