3/9/2018 2:19:08 PM
|written By : Team India Se|
Singapore’s Minister for Trade and Industry Lim Hng Kiang, together with his counterparts from Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, and Vietnam signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Santiago, Chile, on March 9.
The deal signed by 11 Asia-Pacific countries covers a market of nearly 500 million people even after the US pulled out of the deal last year. Together, they account for more than 13 per cent of the global economy - a total of US$10 trillion dollars.
The agreement is expected to boost the Singapore economy by 2 per cent, according to the Peterson Institute for International Economics.
The agreement will strengthen trade among countries in the Asia-Pacific, through the substantial elimination of tariffs and non-tariff barriers for goods, improved access for service suppliers in a wide range of sectors, greater facilitation of investments, enhanced access to government procurement contracts, and modern rules to address emerging trade challenges, said Singapore's Ministry of Trade and Industry in a press release. The door is open for like-minded parties to join the CPTPP once it has entered into force, it added.
Australia's Prime Minister, Malcolm Turnbull, says the deal has been set up to allow it to admit new members, possibly including the US.
US President Donald Trump fulfilled an election promise by pulling out in January last year, labelling the deal a disaster for American workers.
As a key regional agreement, the CPTPP will complement Singapore’s existing network of bilateral free trade agreements.
Mr Lim said, “The signing of the CPTPP is a concrete demonstration of the signatories’ commitment to the collective goals of greater trade liberalisation, regional economic integration, and better opportunities for our people. Singapore companies will be better placed to tap on growth opportunities and increased market access in the Asia-Pacific.”
Singapore companies interested in business and investment opportunities in the CPTPP countries may contact IE Singapore at 1800-IE-SPORE (1800 437 7673) or email email@example.com, the ministry said.
Singapore, Malaysia, Brunei and Vietnam will each receive a bump of more than 2 per cent to the economy, thanks to the agreement, says the Peterson Institute for International Economics, reports the BBC.
New Zealand, Japan, Canada, Mexico, Chile and Australia will all grow by an additional 1 per cent or less.
The same study says the US could be a big loser, foregoing a boost to its gross domestic product of 0.5 per cent (worth US$131 billion).
What's more, it could lose an additional US$2 billion because firms in member countries have an incentive to trade with each other instead of with American companies.