Taiwan’s CPTPP application followed by China’s CPTPP application.

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According to a Reuters article, Taiwan’s economy minister, Mei-hua Wang, voiced concern last week after China’s “sudden” decision to apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) following Taiwan’s application.

In response, the Taiwan economy minister claims China’s current policies are counter to the principles of free trade and transparency expected by CPTPP members – such as China’s use of import bans and potential inability to meet the high standards required of CPTPP participating countries.

According to the Reuters article, one such motivation for China’s sudden application is because China views Taiwan as part of its territory and does not want Taiwan to join before they join.

The CPTPP was originally going to be known as the Trans-Pacific Partnership (TPP) but the trade agreement was drastically changed in 2017 when former President Donald Trump withdrew the US from the agreement. This led to creation of the current CPTPP linking the following countries: Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Besides Taiwan and China, Britain is also applying for membership.

Lastly, Reuters writes Taiwan has been heartened by recent progress towards trade agreements with the United States and the European Union, which are both frustrated with China’s lack of progress in opening its economy and are keen to show their support for Taiwan’s democracy and much freer market policies.

Taiwan to join the Trans-Pacific Partnership?

Hsinchu, Taiwan.

The Obama administration supported the US’s participation in Trans-Pacific Partnership (TPP) – a multilateral trade agreement between the US and 11 other nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. When President Donald Trump won the presidency in 2016, he fulfilled his campaign promise and withdrew from the TPP.

Following the US withdrawal – the remaining nations named the trade deal the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) linking Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

This past week, Taiwan announced they will submit an application to join the CPTPP. New member applications are required to hold informal talks with existing member and reach a consensus before they can apply.

One potential roadblock for Taiwan’s entry into the CPTPP could be China’s joint application to join the CPTPP.

If you have any questions about the TPP, CPTPP or any other trade agreement – contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Taiwan seeks entry into CPTPP

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Credit: Tony Tan

As reported by the Central News Agency in Taiwan – Taiwan’s President, Tsai Ing-wen (蔡英文) said she hopes Japan will support Taiwan’s admission into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Since the US’s withdrawal, Japan has led the trade initiative and President Tsai hopes the strengthening ties between the two nations will help Taiwan enter the CPTPP.
Part of this recent push could be related to the recent loss of two of Taiwan’s diplomatic allies – Pacific island nations of Kiribati and the Soloman Islands. The loss of these two allies is the result of a pressure campaign by China and reduces Taiwan’s diplomatic allies from 17 to 15.

Canada’s Global Affairs consults whether South Korea, Taiwan, Thailand and the UK should join CPTPP.

The Global Affairs Canada organization includes individuals, businesses (including SMBs), industry associations, experts, consultants, academics, civil society organization, labour unions, governments, indigenous groups, students and youth and other interested Canadian stakeholders.

In late July, Global Affairs Canada started discussions whether South Korea, Taiwan, Thailand and the United Kingdom should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).

An announcement was published in the Canada Gazette, Part 1. Global Affairs Canada has has begun soliciting comments for whether these countries (and China) should join the CPTPP. The deadline for submissions is midnight, August 25, 2019.

The announcement asks for the following information:

1. Contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
2. The specific issues being addressed; and
3. Where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.

Additionally, they would like feedback on specific markets that Canadians and businesses would support entry to the CPTPP.

The full text of the announcement and additional topics Global Affairs Canada would like feedback on can be found here:

http://www.gazette.gc.ca/rp-pr/p1/2019/2019-07-27/html/notice-avis-eng.html#nL5

 

CPTPP invites other nations to join.

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The 11 countries that are part of the “Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)” (formerly known as the Trans-Pacific Partnership), have agreed to expand the trade agreement and are seeking involvement of other Pacific nations.

Last week, the first meeting of the CPTPP was held in Tokyo where Ministers and Officials from Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam were in attendance.

The CPTPP issued a statement welcoming any new countries that can “meet CPTPP’s high standards and objectives”.

The CPTPP was enacted in December 2018 and proceeded after the Trump Administration removed the US from the deal. The next CPTPP meeting will be held in New Zealand and starting in 2020, each member nation will take turns hosting a meeting.

Contact our office if you have any questions how the trans-pacific partnership will impact your business. David Hsu, 832-896-6288 or by email at attorney.dave@yahoo.com.

Trans-Pacific Partnership will come into force December 2018

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When the terms of the Trans-Pacific Partnership (TPP) was agreed to in March 2018, the largest free-trade agreement in Asia would become effective upon ratification by six out of the 11 participating countries.

On Tuesday October 30th, Australia became the sixth country to ratify the pact meaning tariff cuts will take place as early as December, almost 2 years after President Trump withdrew the US from talks. Brunei, Chile, Malaysia, Peru and Vietnam have yet to ratify the deal.

It is estimated the new TPP trade deal will remove tariffs on an estimated 95% of goods traded among the 11 member countries and a combined GDP of $10 trillion.

If you have any questions how the new TPP deal may impact your business, feel free to contact experienced trade attorney David Hsu at any time, 832.896.6288 or by email at attorney.dave@yahoo.com.

New Zealand to ratify CPTPP (TPP) in December or early January 2019.

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According to Radio New Zealand, the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) will be in force around December of 2018 after New Zealand plans to be the first of six countries to ratify the agreeement.

As of today, Japan, Mexico and Singapore have ratified the agreement with Australia, Chile and now New Zealand soon to ratify.

In addition to the 11 countries, Colombia, Thailand and South Korea along with Britain also expressed interest in joining the CPTPP.

Singapore ratifies trans-pacific trade deal.

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Channel News Asia reported last Thursday that Singapore ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Originally known as the Trans-Pacific Partnership, the name was changed after the Trump Administration withdrew US support for the TPP after some members would not agree to US terms regarding pharmaceuticals and intellectual property protections.

Since the new CPTPP was created, only 3 nations have ratified the agreement (with Mexico and Japan as the only two countries to ratify the agreement. However, last Thursday, Singapore became the third after signing the CPTPP.

Terms of the CPTPP agreement concluded in January 23rd of this year and signed on March 8th. There are still 8 more countries that need to sign in order to ratify the treaty. Once all countries sign, the CPTPP will be in force 60 days later.

Harley Davidson claims new factory in Thailand a result of US withdrawal from the TPP.

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According to a Bloomberg article published April 24, 2018, Harley Davidson motorcycle maker opted in on building a factory in Thailand after the Trump administration withdrew US participation in the Trans-Pacific Partnership (TPP). In the first publicized impact of the US withdrawal from TPP, Harley Davidson CEO Matt Levatich indicated the factory in Thailand was “necessary to access a very important market”.

Additionally, the impact of leaving the TPP was also felt locally for the 260 US jobs lost due to the closure of the Missouri plant amind slumping sales in the US.

As a counterpoint to the article – the article does specify that Harley Davidson has seen sales decreasing in 13 of the last 14 quarters. If accurate, the sales declines started long before the TPP was even discussed and long before the US withdrew from participating in the TPP.

It is further important to note that correlation does not mean causality as Harley Davidson sales in the Asia Pacific region were 32,258 in 2015; 32,889 in 2016 and decreased to 30,348 in 2017. Sales decline of Harley Davidson in Asia occurred well before the US withdrew from the TPP.

I believe the US withdraw from participation in the TPP was used by the CEO to justify two unpopular moves – the building of a factory in Thailand and a closure of the Missouri plant.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed on March 8th, 2018.

 

 

Last Thursday, the 11 countries participating in the as-formerly-known-as Trans-Pacific Partnership signed the Asia Pacific trade pact without the United States.

The revised agreement known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) aims to reduce tariffs between member countries. One main item left out of the CPTPP (but included in negotiations of the TPP) are the lack of intellectual property protection of pharmaceuticals favored by the United States.

According to the Peterson Institute for International Economics, the CPTPP will generate $147 billion in income, versus an estimated $492 billion in global income benefits under the original TPP.

Feel free to contact David Hsu for any questions related to CPTPP or how this trade pact may impact your business, 832.896.6288 or attorney.dave@yahoo.com.