CPTPP's entry into force

On 30 December 2018, the Comprehensive & Progressive Agreement for Trans-Pacifi­c Partnership (CPTPP) entered into force for six member countries – Australia, Canada, Japan, Mexico, New Zealand, and Singapore.

CPTPP, one of the largest free trade agreements in the Asia Pacific region, was signed in March 2018 amongst 11 member nations comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The agreement serves as an important platform to integrate markets by reducing trade barriers, protecting investments and intellectual property rights, establishing rules for e-commerce, and promoting fair competition.

Key benefits of the CPTPP for international shippers:

1. With elimination or reduction of tariffs and non-tariff barriers for 95% of goods, companies can access new markets at lower cost. The extent and timing of these tariff reductions vary by product and by market.
2. Companies gain flexibility to make products for any of the CPTPP countries without having to change processes, parts, suppliers or components, as long as the item qualifies under the CPTPP’s Rules of Origin (ROO).
3. Shippers can expect reduced paperwork, fewer customs delays, and expedited processes with these features of the CPTPP: Self-certification of origin, advanced ruling, and pre-arrival processing.

Now that at least half of its 11 signatories have ratified the CPTPP, the agreement will become legally binding on the remaining signatories 60 days after each of them ratify.  Vietnam, the seventh member country to formally ratify the agreement on 12 November 2018, will see the CPTPP enter into force in mid-January 2019.

Download this brochure to learn more about the CPTPP and how UPS can help.

You can also contact your Account Manager or Customer Service Representatives for more information on how you can make the most of the CPTPP to grow your business.