The CPTPP is on, Despite Social and Environmental Concerns

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) signed by eleven countries and covering 500 million people came into force, Sunday.

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The deal, which does not mention “climate change,” has been criticized by experts for failing to adequately address climate change as trade is an important factor in producing global greenhouse (GHG) emissions.

“Silence on this issue isn’t just a point of principle. Failing to recognize climate change has a policy implication, namely, the world’s trade deals do not lock members into more responsible practices,” according to The Hill.

One of the reasons for concern is that the agreement, in the same way as the North American Free Trade Agreement (NAFTA), is that this type of agreement greatly benefits corporations.

Another issue posed by this agreement is the legal leverage it grants corporations over states through a mechanism known as the investor-state dispute settlement (ISDS). This mechanism creates a tendency to liberalize state policy over strengthening regulation.

The mechanism allows companies to “sue host governments using international arbitration panels,” according to the Council on Foreign Relations. A measure which is allegedly necessary to “protect” investors from “unfair treatment.”

“the expansion of [ISDS provisions] threatens to undermine the justice systems in our various countries and fundamentally shift the balance of power between investors, states and other affected parties in a manner that undermines fair resolution of legal disputes,” stated a letter published by over 100 jurists from New Zealand calling for the exclusion of ISDS mechanism from the trade treaty.

The CPTPP is the largest free trade agreement existent today as it involves nearly 15 percent of global trade, and it has 11 signatory countries from Asia, Australia, South America, Europe, which will see reduced 95 percent reduced tariffs on US10.2 trillion of the combined Gross Domestic Product (GDP).

Specifically, the 11 signatory countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The partnership is set to increase the earnings of member countries by approximately 0.87 percent by 2030 according to the World Bank.