The United States and China are two of the largest economies in the world, and their trade relationships have been a topic of global discussion for many years. Recently, both countries have been negotiating new trade agreements, and one of the most significant is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). In this article, we`ll explore the differences between China and the US`s proposed agreements with the CPTPP.
The CPTPP is a trade agreement between eleven countries, including Japan, Canada, and Australia. It aims to lower tariffs and improve market access for participating countries. The US was initially involved in the negotiations but withdrew in 2017, while China has expressed interest in joining.
One of the main differences between China and the US`s proposed agreements with the CPTPP is their approach to intellectual property (IP) protection. The US has been pushing for stronger IP protections, including stricter enforcement of copyrights and patents. China, on the other hand, has a reputation for IP infringement and will likely face pressure to reform its laws before joining the CPTPP.
Another difference is the US`s focus on labor standards. The US has been pushing for stronger labor protections in the CPTPP, including the right to form unions and collective bargaining. This is in line with the US`s focus on fair trade and labor rights, but it may not be a priority for China.
The US has also been pushing for the inclusion of digital trade provisions in the CPTPP. These provisions would set guidelines for data localization, cross-border data transfers, and protection of consumer data. China, which has strict regulations on data transfer and storage, may face challenges in meeting these requirements.
Finally, there is the issue of market access. The US has been pushing for greater access to Japan`s agricultural markets, while China is likely more interested in access to the Australian and Canadian markets. Both countries will need to negotiate with other CPTPP members to gain market access, but their priorities may differ.
In conclusion, while both China and the US have expressed interest in joining the CPTPP, their proposed agreements differ in several key areas. The US is focused on IP protection, labor standards, and digital trade, while China is likely more interested in gaining market access. It remains to be seen which approach will be more successful in negotiating a favorable agreement with the other CPTPP members.