What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?

Why in News?

• UK will become the first new member, and the first in Europe, to join the CPTPP since it came into force in 2018.

About Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP):

• It is a free trade agreement (FTA) between 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
• It was signed in March 2018.
• It succeeded the Trans-Pacific Partnership (TPP) after the United States withdrew from the TPP in 2017.
• All 11 countries of CPTPP are members of the Asia-Pacific Economic Cooperation (APEC). 

What is the Asia-Pacific Economic Cooperation (APEC)?

• It is a forum of 21 Asia-Pacific economies established in 1989.
• Members: Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States of America; Vietnam.
• It seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.
• The APEC Secretariat, headquartered in Singapore, provides advisory and logistic services as well as research and analysis.
• APEC decisions are reached by consensus, and commitments are made on a voluntary basis.

 

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Q1) What is a free trade agreement (FTA)?

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Source: U.K. to join Asia-Pacific trade treaty, Rishi Sunak hails ‘post-Brexit freedom’