CPTPP four years on: Unlocking its full value

GROWING economic headwinds, owing to issues ranging from rising inflation to geopolitical tensions, continue to pose economic challenges for countries worldwide as they emerge from the disruption of the Covid-19 pandemic. Yet even as some economies choose to turn inward, the achievements of the four-year old Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) provide a compelling argument for greater trade liberalisation and economic integration.

Research at the Asia Competitiveness Institute (ACI) has revealed signs of increasing economic cooperation among CPTPP constituent parties. Positive effects on trade and investment creation are evident, and there is great potential for the member countries to collaborate in joint research and development. The CPTPP has also emerged as a policy benchmark, with recent digital economy agreements (DEAs) borrowing or adapting its language on sensitive digital issues. Encouraging the further proliferation and adoption of these standards could pave the way for interoperable digital standards.

The CPTPP may be in its adolescence, but the positive effects it has created so far and their implications augur well for its future. Understanding these effects and the overall potential of the agreement in supporting the rules-based international order will be key to unlocking its full value.