Factual Presentation

comprehensive and progressive agreement for trans-pacific partnership (CPTPP) (Goods and Services)^[1]

Report by the Secretariat

Revision

This report, prepared for the consideration of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and does not imply official endorsement or acceptance by the Secretariat of such terminology. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechanism for Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement by the Secretariat regarding the contents of the Agreement.

Any technical questions arising from this report may be addressed to Rohini Acharya (tel: +41 22 739 5874), Jean-Daniel Rey (tel: +41 22 739 5264), Maria Donner Abreu (tel: +41 22 739 5244), Alberto Osnago (tel: +41 22 739 6969) and Ana Cristina Molina (tel: +41 22 739 6060). Any statistical questions arising from this report may be addressed to Rowena Cabos (tel: +41 22 739 5185) and Thakur Parajuli (tel: +41 22 739 5473).

Table of Contents

Page

1   Trade Environment....................................................................................................... 5

1.1   Background Information..................................................................................................... 5

1.2   Merchandise trade.............................................................................................................. 7

1.3   Trade in services and investment..................................................................................... 10

2   Characteristic Elements of the Agreement...................................................... 12

2.1   Background Information................................................................................................... 12

2.2   Structure of the Agreement.............................................................................................. 13

3   Provisions on trade in Goods............................................................................... 15

3.1   Import duties and charges, and quantitative restrictions................................................... 16

3.1.1   General provisions......................................................................................................... 16

3.1.2   Liberalization of trade and tariff lines............................................................................. 17

3.1.3   Liberalization schedule.................................................................................................. 19

3.1.4   Tariff rate quotas.......................................................................................................... 23

3.2   Rules of origin.................................................................................................................. 24

3.3   Export duties and charges, and quantitative restrictions................................................... 27

3.4   Regulatory provisions on trade in goods........................................................................... 28

3.4.1   Standards..................................................................................................................... 28

3.4.1.1   Sanitary and phytosanitary measures......................................................................... 28

3.4.1.2   Technical barriers to trade.......................................................................................... 30

3.4.2   Safeguard mechanisms................................................................................................. 31

3.4.2.1   Global Safeguards...................................................................................................... 32

3.4.2.2   Bilateral safeguards.................................................................................................... 32

3.4.2.3   Special safeguards..................................................................................................... 33

3.4.2.4   Balance-of-payments safeguards............................................................................... 36

3.4.3   Anti-dumping and countervailing measures................................................................... 36

3.4.4   Subsidies and State-aid................................................................................................. 37

3.4.5   Customs-related procedures and trade facilitation......................................................... 37

3.4.5.1   Granting of preferential treatment.............................................................................. 37

3.4.5.2   Customs administration and trade facilitation............................................................. 38

3.5   Sector-specific provisions on trade in goods...................................................................... 39

3.5.1   Agriculture.................................................................................................................... 39

3.5.2   Textiles and apparel...................................................................................................... 40

3.5.3   Motor vehicles............................................................................................................... 40

4   Provisions on Trade in Services and Investment........................................... 42

4.1   Scope and definitions....................................................................................................... 42

4.2   Denial of benefits............................................................................................................. 43

4.3   General provisions on trade in services............................................................................. 43

4.3.1   Market access............................................................................................................... 43

4.3.2   National and MFN treatment.......................................................................................... 44

4.3.3   Commercial presence..................................................................................................... 44

4.3.4   Performance requirements............................................................................................. 44

4.3.5   Senior Management and Boards of Directors.................................................................. 44

4.3.6   Movement of natural persons........................................................................................ 44

4.4   Liberalization commitments............................................................................................... 48

4.4.1   Overview....................................................................................................................... 49

4.4.2   Sector-specific commitments......................................................................................... 51

4.5   Regulatory provisions....................................................................................................... 53

4.5.1   Domestic regulation...................................................................................................... 53

4.5.2   Recognition................................................................................................................... 54

4.5.3   Subsidies...................................................................................................................... 54

4.5.4   Safeguards................................................................................................................... 54

4.5.5   Other provisions on Investment..................................................................................... 55

4.6   Sector specific provisions on trade in services................................................................... 56

4.6.1   Financial Services.......................................................................................................... 56

4.6.2   Telecommunications...................................................................................................... 58

4.6.3   Express Delivery Services.............................................................................................. 60

5   General Provisions of the Agreement................................................................ 60

5.1   Transparency................................................................................................................... 60

5.2   Current payments and capital movements........................................................................ 61

5.3   Exceptions....................................................................................................................... 61

5.3.1   General exceptions........................................................................................................ 61

5.3.2   Security exceptions....................................................................................................... 61

5.3.3   Taxation........................................................................................................................ 61

5.4   Accession and Withdrawal................................................................................................ 61

5.5   Institutional framework.................................................................................................... 62

5.6   Dispute settlement........................................................................................................... 62

5.7   Relationship with other agreements concluded by the Parties............................................ 64

5.8   Government procurement................................................................................................. 69

5.9   Intellectual property rights............................................................................................... 70

5.10   Competition.................................................................................................................... 73

5.11   State-owned enterprises................................................................................................. 73

5.12   Environment.................................................................................................................. 75

5.13   Labour............................................................................................................................ 76

5.14   Electronic commerce....................................................................................................... 77

5.15   Small and Medium-sized Enterprises (SMEs)................................................................... 78

5.16   Other............................................................................................................................. 78

5.16.1   Cooperation and capacity building............................................................................... 78

5.16.2   Competitive and business facilitation........................................................................... 79

5.16.3   Development............................................................................................................... 79

5.16.4   Regulatory coherence.................................................................................................. 79

5.16.5   Anti-corruption............................................................................................................ 80

ANNEX 1................................................................................................................................. 81

ANNEX 2................................................................................................................................. 83