The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) came into effect on 30th December, Sunday. Eleven countries are signatories to the trade agreement that will bring about a significant cutting down in the tariffs in the Asia-Pacific.
In a statement, as quoted by Reuters, David Parker, New Zealand's trade minister said, "The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) provides New Zealand with trade agreements for the first time with three significant economies: Japan, Canada and Mexico.
The CPTPP has the potential to deliver an estimated NZ$222 million ($149.01 million) of tariff savings to New Zealand exporters annually once it is fully in force." Of the 11 countries, the trade deal came into effect for New Zealand, Australia, Canada, Mexico, Japan and Singapore.
Vietnam will be the next country for which the deal will come into effect, on 14th January 2019. The last four signatory countries – Peru, Chile, Brunei and Malaysia – which are currently completing their ratification process, will see the agreement come into effect after 60 days following the completion of their ratification process.
In 2017, the trade deal had to be reworked and remapped following the United States' withdrawal from the TPP. American President Donald Trump had, however, mentioned in April 2018 that were the terms of the agreement modified to benefit the US better, he would consider rejoining the pact.