China’s commerce ministry announced that the country has applied to enter the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). Remarkably, the country looks to boost its clout in trade.
The Chinese ministry, Damien O’Connor, reported that commerce Minister Wang Wentao submitted the country’s application to join the free trade agreement in a letter to New Zealand’s trade minister.
In 2018, the CPTPP was signed by 11 countries, including Canada, Australia, New Zealand, Chile, and Japan.
Previously, it was known as the Trans-Pacific Partnership (TPP) and was considered as an essential economic counterweight to the Asian giant’s regional influence.
Japan, which is the CPTPP’s current chair, announced it will consult with member nations to respond to China’s request. However, the country stopped signaling a timeline for doing so.
Japanese Economic Minister Yasutoshi Nishimura announced that Japan considers it important to determine whether China is ready to meet its exceptionally high standards.
The TPP was central to U.S. President Barack Obama’s strategic pivot to the second-largest economy. However, Donald Trump withdrew America from the pact in 2017. Moreover, accession to the CPTPP would boost the country following the signing of the 15-country RCEP (Regional Comprehensive Economic Partnership) free trade agreement in 2020.
China has lobbied for its inclusion in the pact, highlighting that the Australian and Chinese economies have huge potential for cooperation. Still, relations between the two nations have soured.
The United Kingdom began negotiations to join the trade pact
The United Kingdom in June began negotiations to join the trade pact. Meanwhile, Thailand has also signaled interest in joining it.
According to the Chinese Ministry of Commerce, Wang and O’Connor held a telephone conference to review the next steps following China’s application.
Foreign ministry spokesman Zhao Lijian announced that it will promote regional economic integration in the Asia-Pacific region and the economic recovery, trade development, and investment growth after the pandemic.
The deal cuts tariffs among participants. Moreover, it standardizes regulations in areas such as food safety. The agreement also defines levels of market access for goods and services, including visa rules for business travelers, which can differ between members.
Furthermore, China isn’t the only country trying to join the CPTPP. Earlier in 2021, Britain began talks on joining the partnership, which it sees as one of its biggest opportunities to forge economic alliances beyond Europe after Brexit.
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