Trans-Pacific Partnership Research Articles

Drug Patent Link System in CPTPP and Chinas Response

With the reform of the international intellectual property system, the intellectual property rules in regional trade agreements are gradually leading the development of the international intellectual property system. On September 16, 2021, China formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP intellectual property rules will have a profound impact on China's intellectual property legal system. CPTPP stipulates the drug patent link system, and China is also trying to build a drug patent link system. In order to integrate with CPTPP intellectual property rules and build a drug patent link system in line with China's national conditions, it is suggested to further clarify the patent availability standards of pharmaceutical inventions, simplify the drug marketing approval procedures and improve the patent invalidation procedures.

Elimination of Child Labor in Vietnam's New Generation of Free Trade Agreements

As of March 2021, Vietnam negotiated and signed the new generation of Free Trade Agreements (FTAs), consisting of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the European-Vietnam Free Trade Agreement (EVFTA), and the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA). One of the critical issues of these agreements is non-commercial provisions, especially commitments to the elimination of child labor. This study aimed to examine the implementation of the commitment to eliminate child labor in the new generation of FTAs under the principle of pacta sunt servanda and the government's responsibility to comply with international treaties according to the 2013 Constitution. Based on the obligations arising from international treaties, Vietnam must comply with all commitments agreed upon as a state member. As a result, it is necessary to implement suitable solutions to implement these commitments properly, especially the elimination of child labor, according to the three mentioned FTAs. By using comparative and evaluated methods, this study analyzed and commented on the similarities and differences between the Vietnam labor legal system and these three agreements on eliminating child labor. This study indicated relative compatibility between regulations in three FTAs and the Vietnamese legal system. Subsequently, there is a need to improve the effective implementation of these commitments by amending the definition of children, working hours, and classifying violations against the law regarding the employment of workers under 16 years old of coercive labor into the group of crimes and criminal liabilities to commercial legal entities.
 KEYWORDS: Child Labor, Free Trade Agreements, Vietnam.

The role of the corporate sector in the transformation of the international trade and economic relations system

The article discusses the role of MNCs in the process of transformation of global regulation of trade and international economic relations system. The relevance of this study is determined by one of the key trends in the world economy and the system of international economic relations of the late XX — early XXI centuries — by the process of corporatization of the economic space. There is a desuverenization and corporatization of the national economies of the countries. This process is associated with the increasing dependence of national economies on MNCs and is accompanied by the deepening of the process of corporate globalization of the economic space. The system of economic relations of mega-regional partnerships is the subject of the research. The purpose of the study is to determine the role of MNCs in the process of transformation of global regulation of trade and international economic relations system. There are different methods of scientific knowledge used in the research: comparative-historical, as well as general scientific methods: abstraction, axiomatic method, analysis, induction. As a result of the study, the author identified the key trends in the world economy of the XX–XXI centuries: the corporatization of the economic space, coupled with the desovereignization of national economies. The main findings of the study are: first, the trend towards corporate globalization in the world economy; second, a qualitative changes in the form of organization of trade and economic relations: the transition from globalization to globalizing regionalism — an increase in the number of mega-regional trade agreements, such as the Trans-Pacific Partnership / Comprehensive and Progressive Agreement for Trans-Pacific Partnership, The EU-Canada Comprehensive Economic and Trade Agreement, The Regional Comprehensive Economic Partnership, etc.; third, the crucial role of MNCs in the transformation process of the global trade regulation system; fourth, qualitative changes in the form of relations between corporate sector and state. The results of the study can be used in further research on a given topic.

Trade and welfare effects of a potential free trade agreement between Japan and the United States

This paper addresses the trade and welfare implications of a bilateral trade agreement between the U.S. and Japan. In 2019, the two countries signed a “stage one” trade agreement, with the U.S.-Japan Trade Agreement (USJTA) and the U.S.-Japan Digital Trade Agreement as two small trade agreements. A comprehensive bilateral free trade agreement (FTA) is currently under discussion between Washington and Tokyo, with the U.S. government alternatively joining the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). Based on the theoretical model of Caliendo and Parro (Rev Econ Stud, 82(1):1–44, 2015) , I analyze the welfare gains of such a bilateral FTA in the style of Aichele et al. (Where is the value added? China’s WTO entry, trade and value chains, ZBW-Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz, 2014). I simulate trade and welfare impacts for the USJTA and the U.S.-Japan Digital Trade Agreement, as well as for a deep bilateral FTA. In addition, I examine and compare the welfare implications of the established CPTPP with the scenario of the U.S. or China joining CPTPP. My findings show that Japan’s welfare increases by 0.3% and U.S. welfare increases by 0.14% as a result of the FTA. Welfare of both countries would increase if the U.S. entered CPTPP, with Japanese welfare being even higher if China acceded to CPTPP.

Rise of Geopolitics and Changing Korea and Japan Trade Politics

In the past decade, Korea and Japan have increasingly exhibited different strategic priorities in trade in face of China’s rising global economic prowess and worsening US-China trade conflict. Japan’s trade policy decisions have worked to reinforce its economic and security ties with the US as a means to counter China. Japan has used both bilateral and multilateral means to secure its ties with the US against China. In contrast, Korea’s trade policy positions have been one of ‘strategic ambiguity’. Korea has been more conciliatory towards China, reluctant to take actions that would counter China’s interest. Korea has mainly resorted to bilateral channels to maintain favorable relations with both China and the US. Korea’s reluctance to clearly ally with the US against China has been observed across different administrations with opposing political orientations. This paper examines Korea and Japan’s diverging strategic priorities in trade through the 2017 World Trade Organization Ministerial Conference; the 2017 US imposition of Section 232 on steel; the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Korea-US FTA renegotiation and the Korea-China FTA Phase Two Negotiation; and the 2019 Japan-US Trade Agreement.

Tensions and coalitions: A new trade agreement affects the policy space for nutrition in Vietnam

Global trade has shaped food systems over centuries, but modern trade agreements are hastening these changes and making them more complex, with implications for public health and nutrition transition. This study aimed to understand the impact of the 2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on the policy space for public health nutrition in Vietnam. We conducted comparative document review and key informant interviews, and our analysis drew on a framework of policy space and the theory of advocacy coalitions. We identified 10 CPTPP sections with potential public health nutrition implications; and 50 Vietnamese policies relevant to nutrition having one or more tensions with one or more CPTPP sections. A majority of policy tensions were in sections of the CPTPP relating to technical barriers to trade and government procurement; most tensions related to protecting policy-making from vested interests. Different groups of policy actors hold different beliefs and interests on these issues, and therefore promote different framings and policy approaches. We identified two advocacy coalitions working very separately on issues affecting nutrition policy space: a trade coalition holding the policy position that free trade improves nutrition by default; and a nutrition coalition holding the policy position that nutrition should be explicitly considered in trade policy. The policy space for nutrition in Vietnam has important potential constraints through written policy, and the trade and nutrition coalitions will need to interact more regularly and constructively in order to foresee where these tensions will arise in practice, and create plans for their mitigation. This study adds to global evidence of free trade agreement impacts on nutrition policy space, and we extend previous work by explaining these actor groupings in the policy space through the theory of advocacy coalitions.

Transnational Corporations in Transregional Initiatives: Goals and Problems of Participatio

The activities of transnational business have already become an integral part of the global political and economic development, affecting integration processes in the world. However, the dichotomy of relations between a state and TNC in the context of trans-regional development is not fully understood. The article analyzes the consequences of quantitative and qualitative strengthening of TNC in the world political processes on the example of four major trans-regional projects - the Trans-Pacific Partnership, the Trans-Pacific Trade and Investment Partnership, European Union and MERCOSUR Free Trade Agreement, the Belt and Road Initiative. The authors define the tools promoting each project, which reflect the nature of interaction between states and TNC at the trans-regional level. In addition, the study highlights various objectives of TNC participation in a particular trans-regional association, as well as appropriate resources for the implementation of their interests, which can generally be divided into economic, political and image. To answer the question on how states and transnational business interdepend not only in trans-regional processes but also in the world economy, the authors, based on the practice of modern world politics, construct models of the relationship between states and business and come to the conclusion that the type of interaction these actors use largely depends on states internal political system, as well as their foreign policy goals. Nevertheless, despite the increasing role of TNC as an influential actor in world politics, at the moment it is premature to declare that they are completely independent from states.

Duty Evasion in Free Trade Agreements: Norm Emergence and Implications

Despite the failure of states to adopt multilateral rules to address the circumvention of anti-dumping and countervailing duties, efforts have more recently been deployed by the United States to focus on the issue of ‘duty evasion’. After failed attempts to discuss the issue at the World Trade Organization (WTO), the United States–Mexico–Canada Agreement (USMCA) specifically addresses cooperation between Parties regarding information sharing and duty evasion verification requests with a view to ensuring the enforcement of trade remedy laws. Can the elaboration of duty evasion provisions in regional trade agreements facilitate the negotiation of rules to address the issue of anti-circumvention at the multilateral level? This article argues that the motivations and inherent limits underlying the USMCA duty evasion provisions are most likely to impede broad adoption at the multilateral level. It proceeds in two steps. First, while the United States is playing a pivotal role as a norm entrepreneur in the emergence of these duty evasion provisions, the article demonstrates a clear evolution in its strategy toward a populist approach to international economic policy. Second, after identifying similarities with other provisions, the article addresses the lacunae in the USMCA duty evasion provisions from a legal perspective. duty evasion, anti-circumvention, anti-dumping duties, countervailing duties, United States–Mexico–Canada Agreement, Trans-Pacific Partnership Agreement, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, World Trade Organization, norm entrepreneur, populism

Approaches to Digital Trade and Data Flow Regulation Across Jurisdictions: Implications for the Future ASEAN-EU Agreement

In the last two decades the venue of free trade agreements has turned into an important platform for digital trade rule-making. Yet, the approaches of individual states differ profoundly and the emerging data governance regime is deeply fragmented.The article seeks tomap these developments by looking at selected preferential trade agreements (PTAs) and their design. The enquiry focuses on the United States (US) and European Union (EU) approaches and discusses the differing stances with regard to data flows regulation in particular, while highlighting innovative solutions found in recent trade deals, such as the Comprehensive and Progressive Agreement for Transpacific Partnership (CPTPP) and the United States Mexico Canada Agreement (USMCA). The article then provides an overview of ASEAN’s initiatives with respect to electronic commerce. Against this backdrop, the article evaluates the prospects of digital trade related rules in the future ASEAN-EU agreement. CPTPP, electronic commerce, EU FTAs, data flows, digital trade, RCEP, USMCA

A Study on the Regulatory Similarity between Korea and the CPTPP Member States: Focusing on TBT

Purpose This paper aims to analyze the Technical Barriers to Trade (TBT) of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) member countries with Korea to discuss the importance of the regulatory harmonization and convergence between countries and suggest a direction for the response of Korea to the TBT of the CPTPP. Design/Methodology/Approach This study uses Regulatory Distance (RD), a quantitative methodology that can measure the similarity of TBTs across countries and sectors, and Multidimensional Scaling (MDS), which visualizes it, to compare and analyze regulatory similarities between CPTPP and Korea, China, and the US. Findings First, the TBTs introduced by CPTPP member states generally resemble each other and are more similar in the manufacturing sector than in agriculture. Second, the US regulations that led the TPP were relatively similar to CPTPP, but China showed a large regulatory gap with CPTPP members. Third, the Association of Southeast Asian Nations (ASEAN) countries belonging to the CPTPP generally showed the possibility of regulatory convergence due to their close RD. Finally, Korea showed an overall regulation gap with CPTPP members. Research Implications Although numerous domestic studies on TBT have been primarily qualitative, this study appears to be the first to use RD for the quantitative analysis of the TBT. Furthermore, this study suggests that by using RD to identify countries or industries with regulatory gaps, parties conducting RTA negotiations could use this information as a basis for evaluating countries and industries that require harmonization of technical regulations and standards and preparing countermeasures.

Drafting Investment Law: Patterns of Influence in the Regional Comprehensive Economic Partnership (RCEP)

ABSTRACT The investment chapter in the recently signed Regional Comprehensive Economic Partnership (RCEP) has the potential to affect investment decisions in the Asia-Pacific region and beyond. Yet, we know relatively little about the pathways through which countries determine the content of investment law in preferential trade agreements (PTAs). In this article, we use quantitative text analysis to test theoretically informed conjectures about the negotiation process. We focus on which of the signatories’ past agreements most influenced RCEP, and whether countries chose to draw more from treaty practice through their previous PTAs or bilateral investment treaties (BITs). Our analyses yield several noteworthy findings. First, we show that no single country dominated the negotiation process, instead RCEP represents an effort to reconcile overlapping agreements around a more common template. Second, contrary to the fears of some observers, we show that larger powers such as China and Japan did not overwhelmingly impact the agreement, instead portions were influenced by Association of Southeast Asian Nations agreements, the Comprehensive and Progressive Trans-Pacific Partnership, and others. Finally, we show that, on average, countries drew more from PTAs than BITs, but that they switch strategically between them to reuse language that they deem important for the development of investment law.

Estimating the Impact of Cumulative Rules of Origin on Trade Costs: An Application to Mega-regional Free Trade Agreements in the Asia-Pacific Region

AbstractWe investigate the effects of free trade agreements (FTAs), focusing on the impact of cumulative rules of origin (ROO) on trade costs. Using a gravity regression model, we estimate the effect of various cumulative ROO systems on the measured trade costs. We apply these estimates to static and capital accumulation computable general equilibrium models to compare the effects of mega-regional FTAs in the Asia-Pacific region—namely, the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), and Free Trade Areas in the Asia-Pacific (FTAAP). We find that mega-regional FTAs may not be a viable alternative to a multilateral trading system or bilateral FTAs unless less restrictive cumulative ROO are adopted. Successful FTAs depend on an appropriate cumulative ROO provision system rather than their membership expansion.

Lithium in International Law: Trade, Investment, and the Pursuit of Supply Chain Justice

ABSTRACT Projected demand for renewable energy storage has underlined the importance of lithium-ion batteries, reflected in concern over ‘supply chain security’ for critical minerals. Yet, other voices have called for ‘supply chain justice’ among governments, firms, and communities affected by the social and environmental externalities of lithium extraction. To anticipate disputes and draw a baseline for further research, this article surveys the relevant rules of international law that presently regulate major operations of the lithium industry. First, the material dimensions of lithium are transformed into a workable object of international law, focusing on viable reserves (as opposed to all proven resources) and the analytical priority of territorial jurisdiction. Second, the regulatory regimes of four States with major reserves—Chile, Australia, Argentina, and China—illustrate recurring challenges, such as incentivizing investment in value-added production and the discontent of Indigenous communities. Third, the trade and investment treaties of these States help us to map an international legal framework for the lithium industry, focusing on the World Trade Organization, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership. But such treaties may be interpreted in light of a State’s obligations concerning human rights, environmental protection, and Indigenous peoples, giving legal form to the pursuit of supply chain justice in the energy transition.

A Longitudinal Analysis of the Comparative Advantage of Three Key Industries in Mexico, Vietnam, and Japan Under Frameworks for Trans-Pacific Partnership

We conducted an analysis for the historical strengths and trends of three key economic sectors – agricultural, automotive, and pharmaceutical - in terms of domestic production and international trade for Mexico, Japan, and Vietnam following the conclusion of the Pacific Alliance in 2011, which enabled Mexico to trade freely with other large countries in Latin America and further free trade initiatives such as the Trans-Pacific Partnership (2015) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2018 that included countries in Asia. We used Revealed Comparative Advantage as the empirical framework. The findings indicate that the conclusion of these trade agreements caused certain sectors to gain and certain sectors to lose relative comparative advantage. Vietnam lost comparative advantage in its agricultural sector relative to Mexico’s, which means Mexico could develop its agricultural sector further to support trade with Vietnam. Vietnam’s pharmaceutical industry remained little changed relative to Mexico’s, which means Vietnam should continue focusing resources on the pharmaceutical industry relative to the bilateral trade volume between the two countries.

Policy uncertainty in Japan

We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards, building on Baker et al. (2016). Each index reflects the frequency of newspaper articles that contain certain terms pertaining to the economy, policy matters, and uncertainty. Our overall EPU index co-varies positively with implied volatilities for Japanese equities, exchange rates, and interest rates and with a survey-based measure of political uncertainty. It rises around contested national elections and major leadership transitions in Japan, during the Asian financial crisis and in reaction to the Lehman Brothers failure, U.S. debt downgrade in 2011, Brexit referendum, the deferral of a consumption tax hike, and the onset of the COVID-19 pandemic. Our uncertainty indices for fiscal, monetary, trade, and exchange rate policy co-vary positively but also display distinct dynamics. For example, our trade policy uncertainty (TPU) index rocketed upwards when the U.S. withdrew from the Trans-Pacific Partnership. VAR models imply that upward EPU innovations foreshadow deteriorations in Japan's macroeconomic performance, as reflected by impulse response functions for investment, employment, and output. Our study adds to evidence that credible policy plans and strong policy frameworks can favorably influence macroeconomic performance by reducing policy uncertainty.

Modelling of decarbonised global and local supply chain network for material-based greenhouse gas emission and costs with COVID-19 disruption and trans-Pacific partnership

Modelling of decarbonised global and local supply chain network for material-based greenhouse gas emission and costs with COVID-19 disruption and trans-Pacific partnership

Modelling of Decarbonized Global and Local Supply Chain Network for Material-Based Greenhouse Gas Emission and Costs with COVID-19 Disruption and Trans-Pacific Partnership

Modelling of Decarbonized Global and Local Supply Chain Network for Material-Based Greenhouse Gas Emission and Costs with COVID-19 Disruption and Trans-Pacific Partnership

ПРОГРЕСС РЕГИОНАЛИЗМА И ЗАКОНОМЕРНОСТИ ПОЯВЛЕНИЯ МЕГАРЕГИОНАЛЬНЫХ ТОРГОВЫХ СОГЛАШЕНИЙ

Mega-regional trade agreements have become a new development trend in international trade, the first of which (the agreement on the Trans-Pacific Partnership) was signed back in 2016. Despite the ambiguity of MRTS, it is assumed that in the near future, they will have a significant impact on the system of regulation of international trade on a par with the World Trade Organization (WTO). Since international trade is undergoing significant changes in the 21st century, the system of its regulation (GATT / WTO) formed several decades ago requires significant changes. The most modern instrument for regulating international trade relations is the MRTS, whose rules are more effective than the existing WTO rules, or there are no such rules in the WTO so far.

What Changes Should be Made by China under Article 20.16 of CPTPP

For the first time, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) presents the series of environmental provisions as a separate chapter in a multilateral economic and trade agreement. This chapter deals with specific areas of environmental protection. Article 20.16 of the CPTPP is about marine capture. This article contains requirements for fisheries management systems of the contracting Parties, restrictions on illegal, unreported and unregulated Fishing (IUU fishing), and prohibitions and modifications of fishery subsidies granted by the contracting Parties. China is the largest fishing nation in the world, so Article 20.16 of the CPTPP will have a significant impact on China if China successfully joins the CPTPP after its application in September 2021. The issue of legal convergence is particularly important currently. WTO has passed the Agreement on Fisheries Subsidies, reaching an agreement on the issues such as the identification of IUU fishing and fishery subsidies based on Special and Differential Treatment. However, there are still several additional provisions waited to be negotiated, which China needs to keep working hard on.[1] In addition, although China has relatively domestic legislation in this area and has actively signed and participated in relevant international documents, it still lacks legal provisions on fishery subsidies and has not signed The Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels (Compliance Agreement). All of these will limit China's voice and basis for environmental provisions in bilateral free trade agreement negotiations. China should clarify the relevant concepts, improve its domestic legislation, accelerate its accession to relevant international documents and treaties, and upgrade its bilateral investment agreements in a timely manner.

ISDS mechanism under the EVFTA: Comparison with the CPTPP and Implications for Vietnam

International investment plays an indispensable part in the economic development of most countries in the world. Not only does it ensure huge and stable capital flows, but it also creates jobs and transfers advanced technology to host countries. Nevertheless, in that process, investment-related disputes are inevitable and it is impossible not to mention the Investor-State dispute because of the unequal status of the two disputing parties. As a consequence, the Investor-State Dispute Settlement (ISDS) mechanism was born to resolve this particular type of dispute as well as protect the interests of foreign investors, who are always considered to be the subordinate party. This article mainly aims to study the ISDS mechanism in the European Union - Vietnam Free Trade Agreement (EVFTA) in a comparative relationship with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The authors collect, summarize, compare and analyze data from trustworthy sources and conducts the in-depth interviews with the experienced experts in law, dispute settlement and international integration. The findings show that the ISDS mechanism is basically quite similar in EVFTA and CPTPP. However, there are still notable differences in these two new generation free trade agreements in terms of the scope of application, dispute settlement agency and suit procedures. In addition, the study also highlights the situation of widespread application of the mechanism worldwide in the period 1987-2020. Besides, the difficulties and challenges that Vietnam has to face in the context of ISDS-related disputes are expected to increase in the coming time are pointed out. From the analysis, a number of implications are proposed for the state and businesses with the desire to minimize the disputes or damage caused by the disputes.