Key Findings
- The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a twenty-first century trade accord that aims to secure a level playing field and rules-based trade environment in the Indo-Pacific. Yet in the absence of the United States, it risks underachieving on this goal.
- The European Union (EU) is the only global actor with the trade preferences and requisite economic heft to provide a similar anchoring function for market-orientated trade as was envisioned for the United States in the CPTPP. An EU accession bid to the CPTPP would require overcoming major hurdles and reservations, not least in Brussels. The gains in surmounting them, however, would be considerable.
- Any EU accession process should avoid jeopardising the possibility of a return of the United States to the multilateral trade agreement. An equivalence regime for regulations where CPTPP members are not in alignment with EU standards could in principle open the possibility of the EU and the United States eventually co-habiting within the CPTPP, however remote or delayed the prospect.
- Australia should use its status as a founding CPTPP member to advocate for EU accession to the trade agreement. Engaging Europe on the future of the multilateral trade architecture in Asia presents a key area of potential convergence between Brussels and Canberra, following a setback in strategic ties caused by the Australian cancellation of a French-led submarine contract.
Authors
- Published in
- Australia
