What Does CPTPP Stand For?

The CPTPP stands for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. As of February 2018, CPTPP is a new free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Who Has Ratified CPTPP?

The countries that have ratified the CPTPP includes:

  • Mexico | June 28, 2018
  • Japan | July 6, 2018
  • Singapore | July 19, 2018
  • New Zealand | Oct 25, 2018
  • Canada | Oct 29, 2018
  • Australia | Oct 31, 2018
  • Vietnam | November

Who Has Not Ratified?

  • Peru | Expected before 2019
  • Brunei
  • Chile
  • Malaysia

When Does It Start?

Since 6 of the countries have ratified, CPTPP will start on Dec 30th, 2018. For all of the countries that have ratified, they will be able to start using the agreement on Dec 30th. For the rest of the countries who have yet to ratify, the agreement will come into force for them 60 days after that country ratifies and deposits as well.

When Was It Signed?

The CPTPP was signed on March 8th, 2018, in Santiago, Chile.

When Will CPTPP Come Into Force?

The CPTPP will come into force on Dec 30th, 2018, which would mean 2018 is year 1 and 2019 is year 2. Which means faster duty reductions. The 'years' for the agreement run from Jan 1 - Dec 31.

Who Can Use The CPTPP Agreement?

The agreement can only be used by the countries that have ratified the agreement.

For example, since Canada is ratified but Malaysia is not, Canada and Malaysia are not able to use the agreement with each other until Malaysia ratifies and the 60 days has passed.

What Are The Benefits?

Approximately 98% of the customs duties will be removed at the time of final implementation. Once CPTPP comes into force, many commodities will be duty free upon entry. The elimination of tariffs will depend on the staging category. Some items will have the duty reduced faster than others. A few commodities will not be reduced at all.

CPTPP Trade Advice
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About Author
Gloria Terhaar
CCS, CTCS, CBSA Professional Designate

Gloria Terhaar has over 17 years of Canadian customs brokerage experience. She currently works in our Canadian division as a Trade Compliance Supervisor and Regulatory Compliance Specialist. Gloria has extensive experience in all aspects of documentation and regulatory requirements as they relate to importing products into Canada. Gloria is often called upon to train industry with some recent talks for MNP, the Surrey Board of Trade, TFO Canada and the BC Produce Marketing Association. In 2018, Gloria also participated in the Canadian Produce Marketing Association and the Canadian Horticultural Council advocacy event "Fall Harvest" in Ottawa where she participated in advocacy efforts for the Canadain produce industry.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.