KUALA LUMPUR: The conclusion of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signals that trade liberalisation can still advance despite challenging international economic conditions.
HSBC Global Research said estimates indicated that by 2030 an accord among the TPP-11 could boost trade in the region by six per cent and provide welfare gains on the order of US$157 billion, excluding the account of the suspended provisions.
“Non-members such as China, India, Korea, Thailand and the United States (US) could face modest net losses totalling US$10 billion, as trade is diverted to CPTPP members,” said Chief Trade Economist, Douglas Lippoldt in a note yesterday.
On Nov 11, 2017, 11 Pacific Basin countries announced an agreement in principle for the CPTPP, which builds on the original TPP signed by these countries and the US on Feb 4, 2016 but did not enter into force.
“By joining together, the CPTPP countries stand to gain clout in international trade. They constitute an area with a combined gross domestic product of US$10.1 trillion and a population of 500 million. — Bernama