Countdown Begins to Eliminate Tariffs in Asia-Pacific Pact

The former Trans-Pacific Partnership (TPP), known now as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, becomes effective December 30.

Participants begin to lift tariffs on that date and will continue until 98 percent of tariffs among the trading partners are eliminated, according to media outlets in Asia.

In late October, Canada, Australia, and New Zealand ratified the agreement, which launched the 60-day countdown to its start date. Vietnam on Monday became the seventh country to ratify.

Remaining partners in the pact are Brunei, Chile, Japan, Malaysia, Mexico, Singapore, and Peru.

The United States withdrew from TPP in January 2017. The remaining partners resurrected the deal in May 2017.

The Wall Street Journal reports backers of the agreement say it may be the most important trade agreement reached in more than two decades, modernizing agreements to reflect the rise of digital trade, services and copyright in a fast-growing region.

The trade deal puts U.S. agriculture at a competitive disadvantage as it phases out ties on sensitive products such as agricultural imports in countries including Japan and Mexico.

The trade area encompasses 495 million people and 13.4 percent of the global gross domestic product.