China evaluating and the UK joining the CPTPP, a trade agreement to which Mexico belongs

729

The CPTPP (or TIPAT in Spanish), is made up of Canada, Australia, Vietnam, Singapore, Brunei, New Zealand, Japan, Peru, Chile, Malaysia, and Mexico. It is valid since the year 2018.

The spokesman for the Ministry of Commerce of China, Gao Feng, the Asian country plans to adhere to the Comprehensive and Progressive Treaty of Trans-Pacific Partnership (TIPAT), a trade agreement that integrates 11 countries, including Mexico.

The evaluation is actively ongoing, according to the diplomat. Furthermore, it is important to mention that Beijing has also expressed its desire to join TIPAT.

It is important to mention that Chinese Prime Minister Li Keqiang affirmed that the world economy faces “many uncertainties and destabilizing factors” in its fight against the Covid-19 pandemic.

He insisted that Beijing is committed to its relationship with Britain despite recent tensions.

China posted 2.3 percent GDP growth in 2020, despite a sharp decline in the first quarter due to the shock from the coronavirus, becoming the only major economy to avoid a contraction last year.


The United Kingdom formally requested to join this agreement, through a letter sent to New Zealand, which serves as the depositary of the Treaty.

Last Monday, February 8, the United Kingdom formally announced its intention to adhere to the Comprehensive and Progressive Treaty of Trans-Pacific Partnership (TIPAT, 2018) made up of Canada, Australia, Vietnam, Singapore, Brunei, New Zealand, Japan, Peru, Chile, Malaysia and Mexico.

The Mexican Ministry of Economy stated that the TIPAT is a treaty open to any nation that accepts its principles and is willing to comply with its high standards: “once the United Kingdom has requested its formal accession, the parties should discuss whether to initiate a accession process with said economy and if applicable, the commission will create a working group to negotiate the accession of the United Kingdom to the treaty ”.

Behind the strategic step of the United Kingdom are factors to consider to understand the mega-trends in economic and commercial matters in the following years.

In addition, Indonesia, South Korea, the Philippines, Taiwan, Thailand and Colombia also want to access the TIPAT, in a trend that will shape the trade policies of many countries. Japan is a clear example of why; In the second half of the 20th century, it established an active investment and export promotion policy in Asia, and that explains why it supports Thailand’s entry into the TIPAT: it has considerable Foreign Direct Investment (FDI), especially in the automotive sector.

Sources: razon.com.mx / El Heraldo de México

Mexico Daily Post