CPTPP enters into force in Peru

By Espinosa Bellido Abogados

Peru's Foreign Trade and Tourism Minister Roberto Sanchez officially announced that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force for Peru on September 19, 2021.

CPTPP is a free trade agreement (FTA) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam. It was signed by the 11 countries on March 8, 2018. The agreement is a separate treaty that incorporates, by reference, the provisions of the Trans-Pacific Partnership (TPP) with the exception of a limited set of suspended provisions. The 11 countries have a shared vision of the CPTPP as a platform that is open to others to join if they are able to meet its high standards.

CPTPP loooks to create jobs, strengthen economic relations and boost Peru's trade with important trading partners. Once fully implemented, CPTPP will form a trading bloc representing 500 million consumers and 13.5% of global GDP.

CPTPP is an ambitious and high-standard free trade agreement covering virtually all aspects of trade and investment. The agreement features ambitious market-access commitments in trade in goods, services, investment, labour mobility and government procurement. The agreement also establishes clear rules that help create a consistent, transparent and fair environment to do business in CPTPP markets, with dedicated chapters covering key issues like technical barriers to trade, sanitary and phytosanitary measures, customs administration, transparency and state-owned enterprises.

CPTPP covers trade in goods, rules of origin and origin procedures, customs and trade facilitation, regulatory cooperation and conformity assessment, government procurement, trade in services and labour mobility, investment, intellectual property, labour and the environment, inclusive trade.

It also recognises the challenges facing Small and Medium-sized enterprises (SMEs) in establishing export markets, and includes outcomes to help make this task easier in the CPTPP region.