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    What Opportunities Will Cptpp Bring To Textile Industry

    2021/9/22 14:18:00 0

    CPTPP

    At 22:00 p.m. on September 16, the Ministry of Commerce announced that China has applied to join the comprehensive and progressive trans Pacific Partnership Agreement (cptpp).

    What is cptpp?

    The cptpp is a free trade agreement (FTA) derived from the remaining 11 states parties to the trans Pacific Partnership (TPP). The cptpp contains most of the original TPP agreements, but does not involve the United States and suspends some provisions.

    In addition to the 95% tariff reduction, the cptpp has developed high standards of non-tariff measures, including sanitary and phytosanitary measures, and dispute settlement mechanisms. The agreement suspended 20 provisions of the original TPP, 11 of which were related to intellectual property rights and were promoted by the United States.

    On December 30, 2018, the comprehensive and progressive trans Pacific Partnership Agreement (cptpp) officially entered into force. This is an improved version of the TPP after the United States withdrew from the TPP. Many people think that after trump tore up the TPP agreement, without the leader of the United States, TPP will die. But the remaining 11 countries continued to push forward, eventually forming the world's third largest free trade zone.

    These 11 countries are: Australia / New Zealand / Canada / Japan / Mexico / Singapore / Vietnam / Brunei / Chile / Malaysia / Peru.

    In fact, tariff reduction is only one aspect of the content of the cptpp. According to the media, it has a more strategic intention to remove barriers to investment, services and data in the Pacific Rim region and to create opportunities for retail, banking and e-commerce.

    What is the signal that China actively joins the cptpp?

    In the face of the unprecedented change in a century, new changes have taken place in the international and domestic situation and environment. China proposes to build a new development pattern with the domestic major cycle as the main body and the domestic and international dual cycle promoting each other. Not long after China joined RCEP, China applied to join the cptpp, which means that the dual cycle is not a backward road from opening up to closing, but relying on the scale effect and multiplier effect of the economies of large countries, it still unswervingly opens to the outside world and forms a more benign domestic and international dual cycle.

    Cptpp is still the highest level of economic and trade freedom mechanism so far, reflecting the "comprehensive, extensive and deep system" of rule opening: the first is the dual opening of "trade in services and trade in goods". It covers finance, digital trade, telecommunications, modern logistics, culture and education, medical care, natural person flow and so on. There are not only market and trade issues, but also investment content. The second is the deep opening of "border opening and border opening". In terms of market access, such as reducing tariff and non-tariff barriers, namely "border opening". At the same time, from "border" to "inside the border", it involves technical standards, environmental protection, intellectual property rights, labor, safety and health, competitive neutrality, state-owned enterprises, dispute settlement mechanism and so on.

    China's active consideration of joining the cptpp means that it will take actions in the following aspects: first, in terms of commodity trade, it will further reduce the import tariff, and emphasize in the negotiation that China should implement regional accumulative origin standards, and at the same time, it should do a good job in trade facilitation and investment facilitation, optimize the business environment, and reduce the cost of import. The second is to comprehensively promote the negative list mode in service trade, so as to promote the opening up of China's service trade. Third, in terms of investment, we should learn from China's pre access national treatment plus negative list model adopted in the pilot Free Trade Zone, and promote it in an orderly manner throughout the country. Fourth, we should do a good job in the protection of intellectual property rights, encourage enterprises to innovate, and narrow the gap with developed countries in the core and key areas, which is conducive to China's further participation in the cptpp.

    What are the opportunities for textile enterprises?

    It is helpful to deepen the cooperation of regional textile and clothing industry chain and supply chain

    Through the cptpp, the market access of goods, services, investment and other fields among Member States will be further relaxed, and customs procedures and technical standards will be gradually unified. Through the adoption of regional cumulative rules of origin, it will promote the free flow of economic factors in the region, strengthen the cooperation of production and division of labor among members, promote the expansion and upgrading of the regional consumer market, and promote the regional industrial chain, the regional industrial chain, and the regional cooperation in production and division will be strengthened Supply chain and value chain are further developed.

      Rules of origin accumulation benefit enterprises more

    A large-scale regional origin accumulation system will make it easier for enterprises to obtain preferential tariff. At the same time, it will have an impact on the purchase of raw materials and spare parts, the layout of industrial chain and the decision of foreign investment. After the cptpp comes into effect in the future, when enterprises import and export products listed in the tariff reduction list and meet the standards of origin, they should actively apply for and issue certificates of origin, so as to enjoy tariff preferences and customs clearance convenience in time, and enhance the competitiveness of products in the international market.

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