The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has recently been ratified by Peru, making it the eighth member to approve the pact after it entered into force in December 2018. Peru was one of four remaining countries that had yet to ratify CPTPP. The three remaining are Brunei, Chile and Malaysia.

By doing so, Peru has taken the important step of putting into effect an agreement that brings together 11 economies in the Asia Pacific region.

With its entry into force, Peruvian exports will be able to enter —immediately and free of tariffs— New Zealand and Vietnam and —once they ratify it— Brunei and Malaysia, countries with which Peru has no free trade agreement.

New Zealand’s modest trade and investment ties with Peru are expected to strengthen on the back of the improved access under the CPTPP and Peru’s sustained high economic growth, forecasted at 4% annually until 2022, and economic diversification.

The 11 members of CPTPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Singapore, Vietnam, and Peru with combined economies representing 13.4 percent of global gross domestic product, at approximately US$13.5 trillion, making the CPTPP one of the world’s largest free-trade areas by GDP, along with the United States–Mexico–Canada Agreement, the European Single Market, and the Regional Comprehensive Economic Partnership.

The text of the CPTPP and resources are available here.

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