TPP-11 Set to Take Effect on Dec. 30
Tokyo, Oct. 31 (Jiji Press)--The revised Trans-Pacific Partnership free trade agreement among 11 countries is now set to come into force on Dec. 30, as the requirement for its effectuation was met with Australia's ratification of the pact on Wednesday.
The so-called TPP-11 pact is to take effect 60 days after a majority of its signatories, or six countries, complete their domestic procedures. After the effectuation, tariff elimination and reductions, as well as new investment rules will initially be applied only to the nations that have completed required procedures.
Mexico, Japan, Singapore, New Zealand and Canada had completed their procedures to ratify the TPP-11 before Australia.
The 11 nations' combined gross domestic product totals over 10 trillion dollars, accounting for some 13 pct of the global GDP. While the proportion of the TPP countries' combined GDP was pushed down from 40 pct with the United States' withdrawal from the original 12-member pact last year, the percentage may go up as many of the member economies are developing countries and they have high growth potential.
The creation of the new economic bloc surrounding the Pacific Ocean is expected to be a driving force for free trade aimed at supporting global growth on a multilateral basis, at a time when trade friction between the United States and China is escalating and protectionist moves are spreading, observers said.
[Copyright The Jiji Press, Ltd.]