Progressive Agreement For Trans-Pacific Partnership Research Articles

A Study on the Competitiveness and Influencing Factors of the Digital Service Trade

In today’s digital era, the rapidly escalating digital service industry plays a crucial role in the country’s economic development. However, compared to the countries that are a part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the competitiveness level of China’s digital service trade still needs to be improved. This paper aims to know the differences in the competitiveness of the digital service trade between China and CPTPP countries and explore the factors affecting competitiveness in both exports and imports to improve China’s competitiveness level and narrow the gap with CPTPP, thereby promoting its accession process. This paper first uses China and CPTPP countries’ 2010–2022 import and export volume of digital service data to calculate each country’s revealed comparative advantage index, trade competitiveness index, market share, and Michaely fluctuation index indicators, further comparing the comprehensive level of competitiveness between countries. Then, based on the diamond theory, multiple regression analyses will be conducted based on the factors influencing digital service trade competitiveness and using the indicator data of influencing factors in each country for 2010–2021. The conclusions show that China’s digital service trade competitiveness ranked relatively high among CPTPP countries. The competitiveness of imports and exports of the digital service trade is influenced positively by several factors, including the degree of trade freedom, government efficiency, the number of fixed broadband subscriptions per 100 people, and the industry’s openness. The value of exports of trade in goods has a positive effect on export competitiveness, the enrolment rate in tertiary education has a positive effect on import competitiveness, and the ratio of employed in the service sector to the total employed has a dual effect, facilitating export competitiveness and inhibiting import competitiveness.

Transition to Polycentrism and the Transformation of Regional Trade Agreements

Regional trade agreements (RTAs) are important instruments of the world trade system, which have been increasingly developed in recent decades, since they complement the existing World Trade Organization (WTO) and WTO+ agreements and allow taking into account the specificities of regions. The principle of ensuring non-discriminatory trade is the main principle of multilateral trade of the WTO, or in other words, observes the rule of not favoring one trading partner over another. RTAs are, in fact, an exception to this approach, as it is the signatories that enjoy more favorable market access conditions. At the same time, the WTO recognizes the legitimate role of RTAs in facilitating trade between their parties, but requires that they not create barriers to trade with third parties. RTAs cover more than half of world trade, and new transcontinental agreements have been concluded in recent years: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Comprehensive Regional Economic Partnership, and the African Continental Free Trade Area. There are different types of RTAs in international cooperation, ranging from free trade agreements to common markets, including between countries of a territorially contiguous or transcontinental nature, based on WTO and WTO+ agreements or protectionist in nature. The article reflects the consequences for the national economies of developing countries, it is revealed that the European Union in the RTAs is actively promoting its values as the absolute truth for all peoples and nations, and their non-acceptance is considered as a factor causing possible restrictions. Other developed economies have also imposed obligations on signatories in terms of ensuring the transformation of the national economies of developing countries, but in recent years this trend has weakened somewhat. China, initiating the RTA, pursues the realization of its national interests, without imposing any political, mental or social aspects, and at the same time is ready to develop mutually acceptable compromises. The transformation of RTАs in modern conditions is carried out in three basic directions: preference for the preservation of full sovereignty by the signatory countries; the inclusion of articles that condition the promotion of sustainable development; control and monitoring to ensure compliance with labor safety regulations, non-damage to the ecological environment, as well as the use of tools of responsible corporate business conduct.

Experimentation at the WTO lab: towards a better ‘Interface’ to accommodate State-owned enterprises

Abstract This article advocates for a more inclusive and adaptable interface mechanism at the World Trade Organization (WTO), specifically tailored to address the nuanced dynamics of State-Owned Enterprises (SOEs). It revisits the foundational ‘Interface Theory’ by John H. Jackson, a cornerstone in shaping initial WTO rules for non-market economies. Drawing upon the critiques of David Kennedy, this article identifies three key limitations inherent in the existing interface theory. It then delves into a critical examination of the regulations pertaining to SOEs within the frameworks of the Trans-Pacific Partnership / the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing that these models inadequately address the complexity of state participation in the economy, with a particular focus on non-market economies like China. This article suggests leveraging the WTO as a global policy laboratory, a forum for the exploration and discussion of varied national strategies concerning SOE management. It posits China’s mixed-ownership reform as an exemplary starting point for such experimental endeavours.

Is Indonesia Ready to be the Party of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership has been highlighted by Indonesia due to its enhanced rule-based nature. However, the anti-corruption issues and the environmental issues have triggered questions on whether Indonesia is clean or healthy enough to be the party to this agreement. This article aims to understand Indonesia's readiness to be a party to this agreement. It implements the doctrinal method by implementing the related rules of international law related to treaty suspension, anti-corruption, and environmental issues in Indonesia. The implementation of such a method is also supported by the treaty approach, conceptual approach, and case approach.  From the first discussion, it can be understood that treaty suspension is a regime constituted under the Vienna Convention on the Law of Treaties, and the CP-TPP’s Suspension has no specific deadline. The second discussion expresses that since Indonesia has not brought its anti-corruption rules in conformity with the United Nations Convention Against Corruption, the accession of CP-TPP may bring threats to Indonesia. This threat is caused by the CP-TPP dispute settlement mechanism's competence to settle disputes on anti-corruption issues. Lastly, the third discussion of this article states that the current Indonesian environmental law norms may be perceived as a potential threat to its national interests. Such a threat will arise if the current parties to the CP-TPP eventually decide not to suspend Article 20.17 concerning Conservation and Trade.

Tariffs and Vietnam’s exports of Mach and Elec products to CPTPP partners

Mach and Elec is a vital sector greatly contributing to Vietnam’s economic growth and the trade liberalization mechanism in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has further enhanced our opportunities to boost exporting these products. Hence, in this paper, we made the first attempt to analyze the impact of tariffs on Vietnam’s export of Mach and Elec products to partners within CPTPP. This study utilized a modified gravity model and simultaneous quantile regression to analyze Vietnam’s export turnover of machinery and electronic products to 10 CPTPP member countries from 2005 to 2020 on different quantiles of the export distribution. The primary variable of interest was the applied tariffs (AHS). The results indicate that the most preferential tariff available still has a significantly detrimental impact on Vietnam’s export turnover. Also, exports of Mach and Elec products to larger markets in CPTPP tend to be more affected by tariffs than smaller ones. Our research findings have important implications for Vietnam enterprises and the government exporting machinery and electronic products to make the most of the preferential tariff under the CPTPP agreement.

Does the strength of the US dollar affect the interdependence among currency exchange rates of RCEP and CPTPP countries?

This study investigates the interdependence among currency exchange rates of Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries using regular vine copula model. We examine the asymmetric impact of the strength of US dollar (USD) on the dynamic dependence between currencies. The findings show that Singapore and Australian dollars play dominant roles in the currency network. The USD strength significantly affects the co-movements between currencies with the strongest correlations; and the influence of USD strength can be amplified during strong-dollar periods. Furthermore, shrinking USD liquidity, which is typically accompanied by a strong dollar cycle, generally increases currency dependence within the RCEP and CPTPP.

The Legal Enforceability of CPTPP Anti-corruption Provisions and The Implications to Dispute Settlements

Compared to previous free trade agreements(FTAs), the anti-corruption provisions(ACPs) in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) have been significantly strengthened in terms of legal enforceability and deserve more attention. The legally enforceable ACPs in CPTPP are concentrated in Articles 26.6 and 26.7. However, this legal enforceability may have implications for dispute settlements under CPTPP and could cause internal conflicts and judicial overlap which need to be addressed through treaty interpretation, treaty modification, or general international law approaches, and the role of the Trade Commission could be considered. This article wishes to provide ideas for a more harmonious inclusion of ACPs in future FTAs. CPTPP, Anti-corruption, Enforceability, Dispute Settlement, Internal Conflict, Judicial Overlap

Implementation of Regulations on Biodiversity in Vietnamese Environmental Law

This article analyzes the biodiversity-related provisions in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European-Vietnam Free Trade Agreement (EVFTA). In addition, the author examines Vietnam’s biodiversity-related regulations for the purpose of internalizing these two Agreements. The authors also point out several challenges of Vietnam in implementing commitments and offer solutions for improving the effectiveness of implementing these commitments.

The Trade Effect of Non-tariff Measures in a Comprehensive Trade Agreement

The aim of this study is to quantify the trade effects of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is considered to be a comprehensive trade agreement. To this end, we estimate the gravity equation for worldwide trade and introduce applied tariffs into this equation to differentiate between the trade effects of tariff reduction and non-tariff measure (NTM) changes. Our gravity equation results indicate that the trade effect of NTM changes under the CPTPP is insignificant on average and negative for most products. We also estimate the gravity equation for foreign direct investment (FDI) and find some evidence that the CPTPP increased FDI by a statistically significant amount. Thus, the NTM changes in the CPTPP may increase FDI, rather than trade, among member countries.

Investor-State Dispute Settlement Mechanism in Vietnam’s New Generation Free Trade Agreements: Challenges and Recommendations

In the recent years, Vietnam's attraction to foreign investment capital has increased rapidly. As a result, the disputes in the field of foreign investment have emerged more frequently. The fact that a dispute occurs between the government of the host country and a foreign investors, regardless of its cause, will bring adverse consequences to both parties. Amicable settlement of such disputes is an important factor to improve the efficiency of foreign investment, maintaining the trust between the host country and foreign investors. Therefore, stipulating commitments on the dispute settlement mechanism for international investment in multilateral free trade agreements such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnam - EU Investment Protection Agreement (EVIPA), and Regional Comprehensive Economic Partnership (RCEP) are indispensable. Therefore, in this context, the paper studies the investor-state dispute settlement (ISDS) mechanism in new-generation free trade agreements to which Vietnam is a member, namely EVIPA, CPTPP, RCEP; accordingly, the paper proposes some recommendations to Vietnam.

Analysis of Foreign Trade Policy in Abenomics

The outbreak of the international financial crisis in 2008 dealt a severe blow to Japans foreign trade environment. Under the severe form of Japans foreign trade, Shinzo Abe came to power and put forward Abenomics to provide strong policy support for Japans foreign economic development. This paper collects and arranges the foreign trade policy data of the Abe government during its two terms of office and analyses the impact of Abenomics on the Japanese economy. The study finds that, firstly, the Abe government focuses on the construction of an all-round regional economic partnership. During its term of office, it has signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Japan-Europe Economic Partnership Agreement (EPA), and the Regional Comprehensive Economic Partnership (RCEP) and actively carries out trade diplomacy. Secondly, the Abe government attaches importance to foreign investment, actively investing in China, South Korea, and Southeast Asia, considering the economic and trade relations between Eastern and Western Europe. Thirdly, after Abe left office, the Kishida government continued the content of Abenomics. It proposed new capitalism with the times, and implementing this policy in Japans foreign trade has both the shadow of Abes economics and recent developments.

Competing Regionalisms in the Asia-Pacific? Versatile Sustainable Development Issues in FTAs

The essay explores the inclusion of sustainability commitments in free trade agreements (FTAs) in the Asia-Pacific and the potential differences in their emphases that may reflect “competing regionalisms” in the region. Discussing the geo-economics of cross-border regionalism, the diverse trade agreements are compared as to provisions on sustainable development, and reflected with European Union FTAs. Findings indicate a lack of sustainable development issues in the Regional Comprehensive Economic Partnership and in China’s FTAs with regional neighbors, whereas the Trans-Pacific Partnership, and its successor, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, have substantial commitments on environmental and labor protection. The results suggest that the role of advanced economies as norm setters in sustainability policies may be challenged by a shift toward other emphases in Asia-Pacific FTAs. This contributes to our understanding of the cross-currents in global trade regime leading to competing regionalisms, and therefore, the limits to multilateralizing sustainability issues.

The CPTPP, cross-strait tensions, and Taiwan’s recognition for survival strategy under the democratic progressive party

Abstract Since coming to power in 2016, the Democratic Progressive Party (DPP) has pledged to safeguard Taiwan’s sovereignty amidst Beijing’s aggressive imposition of the one-China principle. This article assesses the impact of the DPP’s recognition for survival strategy which involves using free trade agreements (FTAs) to boost Taiwan’s legal standing and recognition in the international community. The strategy entails a two-pronged plan: retaining Taiwan’s status as a vital regional economic player to ultimately advance its de jure sovereignty via regional FTAs. Drawing on Taiwan’s past FTA experiences, we analyze the possible outcomes of the government’s application to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the likely consequences of these outcomes on the country’s sovereign claims and status. We argue that while the DPP’s strategy plays a crucial role in renegotiating Taiwan’s political self as an unrecognized state, failure to mitigate the negative externalities of the one-China principle while negotiating and implementing the CPTPP will further undermine the country’s facto sovereignty.

Some legal issues for Vietnam on workers' right to organize in the new generation of free trade agreements

In recent years, Vietnam has achieved many significant achievements ineconomic development through promoting openness, integration into the global economy,and actively participating in the new generation of free trade agreements. Vietnam hasparticipated in negotiations and signed 16 Free Trade Agreements (FTA), among which theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and theEuropean Union-Vietnam Free Trade Agreement (EVFTA) are two "new generation" freetrade agreements with many new commitments on labor, including the right to freedom ofassociation of workers in enterprises. This article focuses on clarifying the provisions onthe right to establish representative organizations of workers in the CPTPP and EVFTA, aswell as the challenges that Vietnam must face in amending and supplementing the legalprovisions to implement these agreements effectively.

Mega FTAs and the Indo-Pacific Economic Framework (IPEF) in the Asia Pacific Region: Will It Be Cooperation or Competition?

The Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are two mega free trade agreements (FTAs) in the Asia and Pacific region. However, theireconomic interests are rather deeply divided and related to political and security issues. Trade conflicts between the U.S.and China have continued since 2018. To tackle Chinese expansion, the Biden administration initiated the Indo-PacificEconomic Framework (IPEF) in 2021 instead of returning to the CPTPP. This article reviews the two mega FTAs and theIPEF, as well as East Asian collaboration and competition in the region. It examines the East Asian countries’ economicinterests in participating in the mega FTAs and the IPEF and considers how to overcome the protectionism caused by thetrade conflicts between G2. Finally, it analyzes the roles and strategies of major economies overcoming protectionism as thenew global supply and value chains are reshaping in the region.

Asian regionalism and the shaping of state-owned enterprises rules in trade agreements

ABSTRACT This article explores Asian regionalism in the context of rule-making for cross-border regulation of State-owned enterprises (SOEs). Asian regionalism is defined by the normative integration of the Association of Southeast Asian Nations (ASEAN) which features a ‘hard-law obligations with structured flexibility’ paradigm in handling systematic conflicts. On the intra-regional level, the ASEAN aims to create a level-playing field through soft harmonization of competition law and policy. On the multilateral level, several ASEAN countries joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which contains a set of rules dedicated to SOEs. These rules are paradigmatic of the emerging trend in cross-border SOE regulation. This article investigates whether and how the ASEAN way of structured flexibility is manifest in the emerging international rules on SOEs and its implications for cross-border SOE regulation.

Assessing the Competitiveness and Complementarity of the Agricultural Products Trade between Korea and CPTPP Countries

Purpose – This paper aims to investigate the competitiveness and complementarity of the agricultural products trade between Korea and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries. The study evaluates the opportunities and challenges that Korea's agricultural sector faces after joining the CPTPP, and suggests strategies to deepen cooperation and expand Korea's agricultural products trade. Design/methodology – To achieve these objectives, we analyze the trade competition and cooperation relationship between Korea and CPTPP countries in the agricultural products trade. This study uses data from Chapters HS1-24 in UN Comtrade from 2012 to 2022, and applies the indices of revealed comparative advantage, export similarity, and trade complementarity to examine the trade dynamics. Furthermore, we use an Autoregressive Integrated Moving Average (ARIMA) model to predict the agricultural products trade complementarity index between Korea and CPTPP countries from 2022 to 2031. Findings – The findings of our analysis reveal that Korea's agricultural products trade competitiveness is weak compared to that of CPTPP countries, and Korea's agricultural products are at a competitive disadvantage. On the whole, the similarity index of agricultural products trade exports between Korea and CPTPP countries is low, the structure of agricultural products export is quite different, and trade competition is relatively moderate. The trade complementarity index between Korea and CPTPP countries is generally high, with strong complementarity and a large space for cooperation and development. The ARIMA model shows that in the next ten years, although the agricultural products trade complementarity index fluctuates, but is generally high, there will still be a complementarity advantage in the future. Originality/value – This study is the first attempt to investigate the competitiveness and complementarity of the agricultural products trade between Korea and CPTPP countries. We also introduce an ARIMA model to forecast and analyze the future agricultural products trade complementarity index. Our study provides new perspectives and solutions for the future development of Korea's agricultural products trade after joining the CPTPP.

NET ZERO EMISSIONS AND FREE TRADE AGREEMENTS: EFFORTS AT INTEGRATING CLIMATE GOALS BY THE UNITED KINGDOM AND AUSTRALIA

AbstractThe negotiation of the free trade agreement (FTA) between Australia and the United Kingdom promised to integrate trade and climate policies. As a leader of the United Nations Framework Convention on Climate Change (UNFCCC) conference in Glasgow, the UK seemed well-placed to exert pressure on Australia, a country that was yet to embrace a target of net zero emissions by 2050. This article asks whether the FTA achieves this aim. It explains the link between trade liberalisation and climate change, referring to the scale and composition of economic activity and drawing upon examples from energy, agriculture, building and transportation sectors, as well as strategic factors. It provides an original analytical framework to assess the FTA's contributions to climate change goals, pointing to: (1) provisions to strengthen climate commitments, including net zero targets; (2) provisions to facilitate trade and investment in climate-related areas; and (3) provisions relating to enforcement and cooperation. It compares selected initiatives of other FTAs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European Union–Canada Comprehensive Economic and Trade Agreement (CETA), the UK–New Zealand FTA and the Singapore–Australia Green Economy Agreement. It reviews the FTA's negotiating process and its aftermath, including complaints about public participation. The article's conclusion that the FTA makes minimal contribution to climate change mitigation has implications for the broader quest for mutually supportive trade and climate policies, and, now that a net zero target has been legislated by the newly elected Australian Parliament, for the FTA's future implementation.

수산분야 통상정책의 경제적 파급영향 분석

The impact of international trade policies on the fisheries sector is increasingly significant. However, there has been insufficient development of models to analyze the influence of external shocks on the fisheries industry. This study sets itself apart from existing research by creating a Harmonized System (HS) product-based general equilibrium model for fisheries trade that reflects the unique attributes of the South Korean fisheries sector. The study also conducts trade policy scenario analyses, taking into account the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) membership and the Total Allowable Catch (TAC) system.The results of the analysis demonstrate that when employing a product-differentiated model, the export value of individual products experiences a more substantial increase in comparison to the industry-level model. This finding indicates that the model incorporates the trade-enhancing effects stemming from the direct and indirect effects of each product. With regard to the consequences of implementing the TAC system, a decrease in domestic catch volume and an increase in fishery product prices are observed, implying that the introduction of the TAC system may potentially impact the domestic fishing production foundation.In comparison with other developed nations, the establishment and application of specialized trade policy models for the fisheries sector have not been adequately executed. The findings of this study may serve as a valuable instrument for quantitatively evaluating the ramifications of distinct fisheries trade policies.

Did mega-regional trade agreements reshuffle the financial influence of the US, China, and Japan in ASEAN? Evidence from the volatility-spillover effects

The Trans-Pacific Partnership (TPP) and the succeeding Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were widely viewed as trade agreements aiming at containing the influence of China and raising that of the US and Japan in Asia. This study utilizes the outward volatility-spillover effect of the equity market as a proxy for a country’s financial influence and analyzes whether the signing of the TPP and CPTPP reshuffled the financial influence of the US, China, and Japan in the Association of Southeast Asian Nations (ASEAN). The study finds that the TPP and CPTPP did boost the financial influence of the US and Japan in some ASEAN countries; however, there is no evidence that they have reduced the financial influence of China in ASEAN.