The eleven countries on the two coasts of the Pacific Ocean have signed a free trade agreement. This is the third largest trade agreement in the world even without the US. Signing the agreement is a strong signal against protectionism and trade wars. Under the document, the customs duties will be reduced between countries that together account for 13% of the world economy, or 10 trillion USD. If the deal had involved the US, the deal would cover 40% of the world economy.
Without the United States, there is no point in the agreement that Americans have insisted on protecting intellectual property in pharmacy. According to other countries in the agreement, this clause would raise the price of medicinal products.
At the ceremony, the signatures have placed diplomats number one in the 11 countries – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The treaty is called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
It is a revival of the agreement, known as the Trans-Pacific Partnership, which was considered to be buried after the United States announced it was coming out of it.
This contract was signed in 2016 after many years of negotiations. It was launched by Washington during the reign of Barack Obama. Even before this treaty came into force, Donald Trump, announced that the United States is withdrawing from the treaty. Earlier this year, Trump hinted that the US could return to a free trade agreement if a better deal is achieved. However, the other members commented that the change would be difficult at this stage.