Many people may have heard of the CPTPP, a trade agreement between member countries that aims for mutual benefits. CPLINTER brings you some insights into what CPTPP is and its advantages and disadvantages.

What is CPTPP?

CPTPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is a trade agreement involving countries in the Pacific region. The agreement covers trade, services, and investments, creating common standards and regulations between the member countries. Initially called TPP (Trans-Pacific Partnership), the agreement now includes 11 member countries: Japan, Canada, Mexico, Peru, Chile, Australia, New Zealand, Singapore, Malaysia, Brunei, and Vietnam. The United States was initially part of the agreement but has since withdrawn, leading to more relaxed conditions but a smaller market size.

Advantages of Joining the CPTPP

Export Opportunities: Joining the CPTPP increases Thailand’s export opportunities, especially to countries like Canada and Mexico, where Thailand has no Free Trade Agreement (FTA) in place.

Investment: The agreement attracts foreign investments, allowing Thailand to become a base for manufacturing products for export to CPTPP member countries.

Labor and Environment: CPTPP requires countries to align their domestic regulations regarding labor protection and environmental conservation. This could lead to long-term positive impacts for Thailand.

Negotiation Power: CPTPP membership strengthens Thailand's negotiating power on the global stage. Disadvantages of Joining the CPTPP

Intellectual Property: Thai farmers may face higher agricultural costs due to the UPOV (International Union for the Protection of New Varieties of Plants) convention. This would mean that they must buy seeds from multinational companies that hold the rights to the new plant varieties, and they would no longer be able to save seeds for future planting.

Service Industry:Countries in the CPTPP can exclude certain service sectors from liberalization, but other services that are not exempted will have to open up to foreign investors. This could put pressure on Thailand to further liberalize its service market.

Investment: While CPTPP opens up more competition for foreign investors, it also allows foreign investors to file lawsuits against the Thai government through arbitration processes. Thailand must be prepared for increased market competition and potential legal challenges. Trade agreements like the CPTPP have both advantages and disadvantages, but they provide mutual benefits for participating countries. The agreement facilitates trade, promoting the import and export of goods and helping countries' economies thrive.

If you are looking to import or export goods, CPLINTER offers comprehensive international shipping services, including air, road, and sea freight, cargo packaging, export documentation, and customs clearance.

For more information or to send products abroad, you can contact CPLINTER at 02-519-4426, 091-519-4426, or via Line @cplinter. You can also learn more by visiting www.cplinter.com. If you wish to send goods abroad smoothly, feel free to send us the details of the products you'd like to ship, and we will assist you in verifying everything. You can also chat directly with us on Line ID: @cplinter.