China, which is pushing for the Regional Central Export Processing (RCEP) trade pact, has applied to join the controversial Asia-Pacific trade pact, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The CPTPP, once known as the TPP or TPPA was an American led trade pact that Tun Dr Mahathir Mohamad once said was a way to isolate China and solidify American dominance in the world.
Yesterday, Bloomberg said China submitted the formal application letter to join the CPTPP to New Zealand, the depositary nation for the agreement. This makes New Zealand the de-facto HQ for the CPTPP.
Bloomberg says the application is certain to spark a reaction from Washington. The US, under the Donald Trump administration in 2016 tore apart the deal and pulled the US out after years of negotiations spearheaded by the Barack Obama administration.
In Malaysia, the TPP became the platform of choice for local entrepreneurs and activists to target the US and its perceived attempt to use the trade deal to ‘conquer’ the local market.
There were concerns the deal would limit local businesses from exporting to the US because of a series of stringent rules and measures listed under various segments including Intellectual Property, agriculture, manufacturing and exportation.
A local movement launched to counter the TPP campaigned relentlessly to prevent the Malaysian government headed by Dato Seri Najib Razak from signing the deal.
China is the second country to apply to join the 11-nation deal, after Britain. London is hoping it could conclude talks to join the CPTPP by the end of 2022.
