translated from Spanish: New TPP: what changes for Mexico, Chile and Peru with the new trans-Pacific economic cooperation agreement?

Mexico, Canada, Australia, Japan, New Zeland a and Singapore are pioneers in implementing the new comprehensive treaty and progressive for the trans-Pacific Partnership (CPTPP, by its acronym in English), heir to the previous TPP.
Peru, Chile, Brunei, Malaysia and Viet Nam will be added through 2019, when their Governments ratify the agreement completely.
The arrival of these latter countries will complete the birth of the largest area of free trade around the world. A market of 500 million consumers, representing 13.5% of global GDP.
The implementation of the agreement reduces tariffs on 95% of the products exchanged these countries. To give an example, a manufacturer of smartphone of Viet Nam which need to import the display of Japan, Mexico batteries or Brunei chip components will not pay taxes for any of these products.
As a result, the company should see a rebound in sales.
Preferential access “Despite the doubts of many sectors, companies and consumers begin receiving benefits in a few days”, ensures the BBC Deborah Elms, head of the center of Commerce for Asia in Singapore.
In the case of Australia, you can export meat to Japan a 9% tariff, while United States, which withdrew from the agreement in 2017, has yet to pay 38% if you want to place their meat products in the country.
Representatives of the CPTPP countries signed new trade pact in March of 2018.
In the Japanese market, the Australian beef prices will be, predictably, up to 29% cheaper than those of their U.S. competitors.
“The three Latin American countries participating in the Treaty will benefit from provisions allowing cumulation of origin,” says BBC World Anabel Gonzalez, expert in international trade and competitiveness of the Peter Institute for International Economics, a think tank based in Washington.
This cumulation of origin means that in practice, a country may use inputs, products and processes originating from another Member of the agreement as if they were themselves and is especially relevant for the participation of Mexico, more access to five markets not rare is that Mexico is among the countries that lead the implementation underway in the new Treaty. With it, companies in the country will win access to five new markets that previously did not have so closely: Australia, Brunei, New Zealand, Singapore and Viet Nam.
Peter Institute for International Economics estimates that the GDP of Mexico will rise 1.5% in 2030 due to the momentum of the agreement.
According to the Government’s own estimates, the agriculture sector will be one of those who benefit most. Beef, pork and chicken meat products, as well as orange juice will have more access to other markets, but also the tequila or beer.
“For Mexico, the CPTPP also has an important geopolitical component. As the agreement is expanded to include other members, also will serve as platform for these Latin American Nations get more involved with other Asian countries, such as Korea and Thailand”, explains González.
Avocado, known as avocado in several countries of Latin America, is one of the agricultural products exported by Peru.
Peru: Peru very competitive agriculture does not have trade agreements with New Zealand and Brunei, but under the Covenant will develop preferential access to these markets.
“This mega-regional agreement opens up new opportunities for access to the market for products where these countries are highly competitive, such as pork, avocados and beer in the case of Mexico, Peru fish products, and fresh fruits for Chile,” he says. Gonzalez.
Copper, gold, and fish are the main products exported by Peru, but the grapes, avocado or mango, as well as coffee, asparagus or quinoa are famous in international markets for agricultural products.
Chile: a milestone in international trade although it is the largest trade agreement signed by Chile, the country already had bilateral agreements with the other 10 countries. 40% of foreign trade exchanges are done with Asia, and three of its five main partners are located in that region.
Felipe Lopeandía, Chief negotiator of the CPTPP, said that the new access to Japan, Canada and Viet Nam is key.
“Our products in these markets had more restricted conditions of access. Only in Japan, more than a thousand Chilean products will improve their access to this market, especially in the agricultural sector. This will generate more jobs and more economic dynamism,”he said in an interview.
Several international body analysis, quoted Lopeandía, estimated that Chilean GDP could grow by 1% as a result of new business opportunities.
The benefit could be particularly important for agriculture, forestry and fishing sectors.
Colombia, awaiting the Ministers of the countries that form part of the agreement will meet in Tokyo on January 19. On the agenda will be the incorporation of new partners already knocking at the door.
Colombia, United Kingdom, from Thailand or South Korea have already expressed interest.
“If Colombia to join the CPTPP at a later stage, as expected, this will allow the four members of the Pacific Alliance (Chile, Colombia, Mexico, and the Peru) consolidate its integration with Asian countries, giving an example to the rest of Latin America”, Remember Anabel González.
“Not to negotiate, not to participate in these sub-regional arrangements that define the new rules of international trade, is synonymous with loss of competitiveness and opportunities that take advantage of others,” today, summarizes the Economist and former Minister of energy Chilean, Andres Rebolledo Smitmans.

Original source in Spanish