China applies to join CPTPP
China officially submitted its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on September 16th, 2021. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a trade agreement between 11 Pacific Rim nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, which now has two candidate applicants, the United Kingdom and the People’s Republic of China. The trade partnership composes approximately 500 million people and generates more than 13% of the world's income.
A key benefit of membership is greater access to the constituents’ markets, and a pledge to eliminate or reduce 95% of import charges or tariffs, with a small number of carveouts for sensitive domestic areas, such as the Canadian dairy industry or the Japanese rice industry. In addition, there is a “rule of origin” incentive that manufacturers which source components from multiple places can utilise, so their products qualify for preferential treatment. If 70% of those components come from any of the participating countries, then the manufacture can take advantage of the rule.