Thailand called upon to reassess impact of CPTPP

22-Sep-2021 Intellasia | BangkokPost | 7:07 AM Print This Post

Thailand needs to re-evaluate the impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), after China formally applied to join the trade bloc on September 16, according to the chief trade negotiator.

Auramon Supthaweethum, director-general of the Trade Negotiations Department, said many parties have been interested in and closely watching the CPTPP which is expected to become a larger market once China becomes a new member of the bloc.

“China’s application to join CPTPP will increase alliances and expand the Chinese trade and investment opportunities with CPTPP members, especially in terms of participation in the supply chains of the CPTPP members. That will strengthen China as a source of raw materials and key production bases of the region,” she said.

“The expansion of new CPTPP members to cover China and the UK will also increase the attractiveness of CPTPP. Thailand needs to reassess its benefits and the effects that will be emerging carefully.”

The CPTPP was launched in 2019 to remove trade barriers among 11 nations representing nearly 500 million consumers in Asia-Pacific or about 6.7 percent of the world’s population, with a combined GDP worth $10.5 trillion, accounting for 13.3 percent of global GDP.

The pact replaced the Trans-Pacific Partnership, a similar trade deal that included the US until the Trump administration decided to withdraw.

According to Auramon, once the bloc includes China, the population of the CPTPP market will enlarge to more than 1.9 billion (25 percent of the world’s population), with combined GDP worth up to $25.3 trillion (30 percent of global GDP).

However, she noted the size of the CPTPP remains smaller than the Regional Comprehensive Economic Partnership which covers 15 country members, while the latter is currently regarded as the largest FTA in the world with a population of over 2.3 billion (30 percent of the world’s population) and a GDP valued $28.5 trillion (33.6 percent of global GDP).

https://www.bangkokpost.com/business/2185031/thailand-called-upon-to-reassess-impact-of-cptpp

 

Category: Thailand

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