The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is one of the most significant regional trade agreements in the Asia-Pacific. With 12 major member countries, the agreement covers a vast economic area. Taiwan formally submitted its application to join in 2021 under the name “The Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu”, but the application has yet to move into the formal review phase.
So what exactly is CPTPP? Which countries are involved? Why is Taiwan’s application delayed, and why has the issue gained attention recently amid global tariff shifts? This article breaks it all down—from CPTPP’s origins and structure to Taiwan’s strategic goals and the potential industrial impact.
What Is CPTPP?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a multilateral regional trade agreement (RTA). It allows member countries to negotiate rules on trade, investment, and economic cooperation. Its primary goal is to deepen regional integration and enhance trade liberalization in the Asia-Pacific.
The CPTPP originated from the Trans-Pacific Strategic Economic Partnership (TPSEP) signed in 2005 by Singapore, Brunei, Chile, and New Zealand. It was later expanded into the Trans-Pacific Partnership (TPP) with U.S. leadership, ultimately covering 12 countries. The TPP was signed in 2016, but the U.S. withdrew under President Donald Trump in 2017. Japan then led efforts to revive the agreement, and in 2018, the remaining 11 countries signed a revised version—renamed the CPTPP.
Timeline of Events
| Date | Event |
|---|---|
| 2005/05/28 | Singapore, Brunei, Chile, and New Zealand signed the TPSEP. The deal later expanded into the 12-member TPP under U.S. leadership. |
| 2010/11/14 | After the APEC Summit, nine participating countries agreed to the U.S. proposal and announced the TPP framework. |
| 2012/10/09 | Canada declared the Asia-Pacific region a priority market and, along with Mexico, announced its entry into TPP negotiations. |
| 2013/07/23 | Japan officially joined the TPP talks, becoming the 12th member. |
| 2016/02/04 | The 12 countries signed the TPP agreement in Auckland, New Zealand. |
| 2017/01/23 | Following President Trump's inauguration, the U.S. announced its withdrawal from the TPP. |
| 2017/11/11 | With Japan taking the lead, the 11 remaining countries reached consensus on key issues and issued a joint statement during the APEC Leaders’ Meeting in Da Nang, Vietnam, announcing the renaming of TPP to CPTPP. |
| 2018/03/08 | The 11 countries signed the CPTPP in Santiago, Chile. |
| 2018/12/30 | CPTPP came into effect. The first countries to complete domestic ratification were Mexico, Japan, Singapore, New Zealand, Canada, and Australia, followed by Vietnam, Peru, Malaysia, Chile, and Brunei. |
| 2021/02/01 | The UK officially applied to join CPTPP and became the first non-founding member upon approval on 2024/12/24. |
| 2024/11 | The 8th CPTPP Commission meeting held in Vancouver, Canada, approved the establishment of a working group for Costa Rica's accession. |
| 2024/11/20 | ASEAN expressed interest in collaborating with CPTPP members to address global trade uncertainties caused by new U.S. tariffs. Discussions are set to begin on November 20. |
As of now, CPTPP has 12 member countries. The 11 founding members are Japan, Canada, Australia, New Zealand, Singapore, Vietnam, Mexico, Peru, Malaysia, Chile, and Brunei. The UK officially joined in December 2024 as the 12th member. Several other countries have applied to join, including China, Taiwan, Ukraine, Costa Rica, Uruguay, Ecuador, and Indonesia. Among these, only Costa Rica’s application was approved at the 8th CPTPP Commission in late November 2024, prompting the formation of a working group to advance its accession.
Member Country Scale
CPTPP member countries have a combined population of about 590 million, roughly 7% of the global population, and a combined GDP of approximately USD 14.6 trillion, accounting for around 13% of global GDP. This region represents about one-fourth of Taiwan’s total trade, highlighting the strategic importance of CPTPP for Taiwan’s regional economic integration.
| CPTPP Country Population and Economic Output | |||||
|---|---|---|---|---|---|
| Country | Population | GDP (USD) | Imports (USD) | Exports (USD) | |
| Asia | Japan | 123.42 million | $4.262 trillion | $746 billion | $709 billion |
| Malaysia | 34.1 million | $418 billion | $304.62 billion | $335.04 billion | |
| Singapore | 6.04 million | $510.6 billion | $430.2 billion | $484.2 billion | |
| Vietnam | 100.11 million | $476.3 billion | $380.8 billion | $405.5 billion | |
| Brunei | 456,000 | $15.064 billion | $7.284 billion | $11.243 billion | |
| Americas | Mexico | 130.74 million | $1.85 trillion | $625.3 billion | $617.3 billion |
| Canada | 41.67 million | $1.46 trillion | $554.2 billion | $568.9 billion | |
| Chile | 20.12 million | $333.5 billion | $79.5 billion | $101.8 billion | |
| Peru | 34.03 million | $283.31 billion | $51.23 billion | $74.664 billion | |
| Oceania | Australia | 26.79 million | $1.752 trillion | $283.6 billion | $341.4 billion |
| New Zealand | 5.25 million | $260.2 billion | $44.7 billion | $42.3 billion | |
| Europe | United Kingdom | 69.22 million | $3.3123 trillion | $820 billion | $512.5 billion |
| CPTPP Total | 592.946 million | $14.69747 trillion | $4.32743 trillion | $4.203847 trillion |
Source: Bureau of Foreign Trade, Ministry of Economic Affairs (Taiwan)
CPTPP Application Process
Joining the CPTPP involves a rigorous and consensus-based process. A prospective member must first submit a formal application to the CPTPP Commission. Member countries then decide whether to establish a working group for assessment. The working group engages in broad negotiations with the applicant, reviewing regulatory alignment with CPTPP standards, and assessing commitments to market openness and tariff reductions. Once consensus is reached, all members and the applicant sign an accession protocol. The applicant only becomes a full member after all current members complete their domestic ratification processes.
Rotating Chairmanship of CPTPP
CPTPP members rotate the chair annually. The chair is responsible for convening and presiding over committee meetings, setting annual agendas, coordinating communication among members, resolving disputes, representing the agreement externally, promoting new memberships, and addressing trade challenges to ensure smooth functioning and growth of the agreement.
| Year | Chair Country |
|---|---|
| 2021 | Japan |
| 2022 | Singapore |
| 2023 | New Zealand |
| 2024 | Canada |
| 2025 | Australia |
Key Provisions of the CPTPP
The CPTPP is primarily based on the original TPP agreement, retaining similar rules on tariff reductions and rules of origin. Anticipating a possible U.S. return, the agreement did not remove U.S.-backed provisions but instead suspended 22 items, including intellectual property protections (e.g., extending copyright from 50 to 70 years, pharmaceutical patents), narrowing the scope of investor-state dispute settlement (ISDS), and government procurement.
Unlike traditional trade agreements focused only on goods, CPTPP spans 30 chapters covering services (telecom, finance), environment, e-commerce, government procurement, competition policy, state-owned enterprises, SMEs, intellectual property, labor rights, transparency, anti-corruption, and investment — aiming to support SMEs, labor rights, and fair trade.
CPTPP vs. RCEP
Both the CPTPP and RCEP are major Asia-Pacific free trade agreements. While CPTPP is smaller in scale compared to RCEP in terms of membership and GDP, it stands out for its “high standards and quality,” covering not only tariff reductions but also broader issues like labor, environment, digital economy, and state-owned enterprises. Its liberalization is deeper and more comprehensive.
| Category | CPTPP | RCEP |
|---|---|---|
| Negotiating Countries | 12; U.S. exited in Jan 2017, UK joined Dec 2024 | 16; India withdrew in Nov 2019 |
| Signatory Countries | 12 | 15 |
| Signing Date | 2018/03/08 | 2020/11/15 |
| Effective Date | 2018/12/30 | 2022/01/01 |
| Initiating Countries | Singapore, Brunei, Chile, New Zealand | ASEAN |
| Lead Country | Japan (after U.S. exit) | China |
| GDP | ~$15 trillion (13% of global GDP) | ~$39 trillion (30% of global GDP) |
| Population | ~600 million (7% of global population) | ~2.2 billion (30% of global population) |
| Total Trade | ~$8.5 trillion (25% of global trade) | ~$9.5 trillion (28.8% of global trade) |
Countries in Both CPTPP and RCEP
| CPTPP | Participating in Both | RCEP |
|---|---|---|
| Canada | Australia | China |
| Chile | Brunei | Indonesia |
| Mexico | Malaysia, | Cambodia |
| Peru | New Zealand | Laos |
| UK | Singapore | Myanmar |
| Vietnam | Philippines | |
| Japan | South Korea | |
| Thailand |
Taiwan’s Motivation and Challenges
According to simulations by the Chung-Hua Institution for Economic Research, if Taiwan joins the CPTPP by 2028, its GDP could grow by 0.73% (about USD 4.8 billion). Failing to join could shrink GDP by 0.05% (around USD 370 million). CPTPP membership also offers non-monetary benefits such as improving the investment climate, strengthening global supply chains, enhancing transparency and fair competition, helping SMEs internationalize, and supporting labor and environmental protections, bolstering Taiwan’s long-term economic development.
As per Taiwan’s Customs Administration, CPTPP members already account for 25.84% of Taiwan’s total trade — with Japan, Malaysia, and Singapore as the top three partners. Joining CPTPP would enhance Taiwan’s economic performance and global competitiveness. Particularly in light of recent U.S. tariff policies, CPTPP's strategic value is increasingly important. The agreement eliminates up to 99% of tariffs within the bloc and unifies rules of origin, helping members diversify risk and strengthen supply chain integration. Membership would reduce reliance on any single market and enhance Taiwan's appeal to investors and manufacturers.
However, Taiwan faces multiple challenges in the application process — including political pressure from China, ensuring domestic laws meet CPTPP’s high standards, and securing consensus among current members. These issues will heavily influence the success of Taiwan’s bid.
Industry Impact on Taiwan
Scenario 1: Joining CPTPP
Affected sectors: Agriculture, transportation equipment, processed foods
Reason: With the influx of low- or zero-tariff goods from other countries, domestic products, especially in sectors reliant on local demand, will face short-term competitive pressure.
Scenario 2: Not Joining CPTPP
Affected sectors: Steel and metals, machinery, cables, petrochemicals, textiles, biotech and pharmaceuticals, general chemicals, construction materials, services
Reason: These industries currently face tariffs from CPTPP countries. Joining the agreement would provide tariff advantages and boost export competitiveness.
Summary
Overall, the CPTPP is one of the most strategically important high-standard free trade agreements in the Asia-Pacific and a crucial platform for Taiwan’s international trade engagement. Economically, joining the CPTPP would enhance Taiwan’s GDP, industrial competitiveness, investment environment, supply chain integration, and regulatory transparency. Conversely, exclusion could reduce Taiwan's market edge in export-driven sectors due to lack of tariff benefits.
Despite challenges such as China’s political interference and meeting the agreement’s high standards, CPTPP membership is vital for Taiwan’s economic security and regional integration. It should remain a top priority in the nation's trade and economic policy agenda.
