Rules, impact, and China’s countermeasures: a comparative study on the CPTPP and the TPP

BAI Jie1,2 SU Qingyi2

(1.School of Economics of Shandong University of Finance and Economics)
(2.Institute of World Economics and Politics, Chinese Academy of Social Sciences)

【Abstract】The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), finally signed on March 8, 2018, entered into force on December 30, 2018. The truncated CPTPP, compared with the TPP, has smaller economic scale and less strategic impact. However, in terms of international economic and trade rules, it still represents the highest standard of the new-generation of trade agreements and leads the international economic and trade rules in the 21st century. Moreover, the US will still potentially return to the agreement in the future. The signing of the CPTPP will have some impact on the global trade landscape and strategic layout. Its importance has increased markedly in particular against the backdrop of the Sino-US economic and trade frictions, the trend of joint formulation of economic and trade rules by the US, Europe, and Japan, and the WTO reform. By text analysis, this paper compared and interpreted the CPTPP and the TPP texts published by the member states. It also analyzed the impact of the CPTPP on the world and Chinese economies from the perspectives of economy, strategy, and rules before analyzing China’s difficulty in accepting the CPTPP and putting forward relevant policy suggestions.

【Keywords】 CPTPP; TPP; comparison; interpretation;

【DOI】

【Funds】 The National Social Science Fund of China (ZDC017) The National Social Science Fund of China (16CGJ001) Social Science Planning Research in Shandong Province (17CZKJ05)

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    Footnote

    [1]. [1] In January 2018, when participating in the World Economic Forum, Trump said during a media interview on the sidelines of the Forum, “Let me tell you the big news. If we can hammer out a much better deal, I’ll join the TPP.” Many scholars thus believed that the US still has the possibility of returning to the TPP during the Trump period. The 2018 Trade Policy Agenda and 2017 Annual Report issued by the Office of the United States Trade Representative pointed out that in 2018, the Trump administration would seek to strengthen bilateral economic and trade relations with the CPTPP members. On the whole, it is still significantly uncertain whether Trump has seriously considered returning to the TPP. [^Back]

    [2]. [1] For full text, please refer to https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-concluded-but-not-in-force/cptpp/[2018- 03-15]. [^Back]

    [3]. [2] http://www.sccwto.org/post/25288?locale=zh-CN, [2018-03-07]. [^Back]

    [4]. [1] For the division of issues, please refer to International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, (2016). [^Back]

    [5]. [1] International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, 36 (2016). [^Back]

    [6]. [2] International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, 110–113 (2016). [^Back]

    [7]. [3] International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, 22–39 (2016). [^Back]

    [8]. [4] International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, 26 (2016). [^Back]

    [9]. [1] The newly re-negotiated North American Free Trade Agreement (renamed the United States-Mexico-Canada Agreement) is a template for the high-standard economic and trade agreement led by the Trump administration. The applicable rules of the agreement need further study. [^Back]

    [10]. [2] The five FTAs include the FTA signed by the US and Singapore in 2003, the FTA by the US and Chile in 2003, the FTA by the US and Australia in 2004, the FTA by the US and Peru in 2006, and the FTA by the US and South Korea in 2007. [^Back]

    [11]. [3] For details, please refer to International Trade Research Office of Institute of World Economics and Politics, Chinese Academy of Social Sciences. The Text Analysis of TPP (跨太平洋伙伴关系协定文本解读). Beijing: China Social Sciences Press, 2–7 (2016). [^Back]

    [12]. [1] The CPTPP text has a total of 31 chapters, namely 30 chapters plus the Preamble. For convenience of analysis, this paper combined the four chapters, namely Initial Provisions and General Definitions, Exceptions and General Provisions, Final Provisions, and Competitiveness and Business Facilitation, into Others. Therefore, the analysis in Table 2 covers all chapters of the CPTPP. [^Back]

    [13]. [1] Zhang, Y. & Feng, W. Tsinghua Financial Review (清华金融评论), (7): 24–25 (2018). [^Back]

This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 01, Pages 58-76+6

January 2019

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Article Outline

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Abstract

  • 1 Origin and prospect of the CPTPP
  • 2 Main differences and interpretations of the CPTPP and the TPP
  • 3 Impacts of the CPTPP
  • 4 Difficulty of accepting the CPTPP provisions in China
  • 5 Policy recommendations
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