Singapore recently became the third nation after Mexico and Japan to ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The agreement is likely to reduce market barriers as well as foster trade in a combined market of 500 million people with a gross domestic product of $10 trillion (S$13 trillion).
The deal establishes rules in new areas, such as e-commerce, and will enter into force 60 days after six of the 11 signatories ratify the agreement. Mexico was the first to ratify the agreement in April, with Japan following suit on July 6. The remaining countries in the bloc are Australia, Brunei, Canada, Chile, Malaysia, New Zealand, Peru and Vietnam.
A revision of the original Trans-Pacific Partnership, CPTPP will complement Singapore's existing network of bilateral free trade agreements. It will strengthen trade among countries in the Asia-Pacific, resulting in a more seamless flow of goods, services and investment. The agreement also signals Singapore's commitment to trade liberalisation and a rules-based trading system.
