Trans-Pacific Trade Deal Now in Effect for Seven Countries
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership will become effective for Vietnam Jan. 14, following its Dec. 30, 2018, entry into force for Australia, Canada, Japan, Mexico, New Zealand, and Singapore. Other signatories to the multilateral free trade agreement include Brunei, Chile, Malaysia, and Peru.
The CPTPP is a modified version of the TPP, which the U.S. withdrew from in January 2017. It provides for immediate duty-free treatment for some products, while tariffs on other goods will be lowered gradually over a number of years until being eliminated entirely.
To qualify for duty-free treatment under the CPTPP goods must meet the agreement’s specific rules of origin and be shipped directly between member countries. Companies that import goods into these countries should examine whether they can take advantage of the more beneficial duty rates offered by this agreement.