According to recent reports, a new agreement has been reached that will have a significant impact on the global trade market. This agreement, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), involves 11 countries and aims to reduce trade barriers and promote economic growth. However, what has caught the attention of many is the fact that staples such as rice, wheat, soybean, corn, dairy products, and sugar are completely outside the ambit of this agreement.
The CPTPP, which was signed in March 2018, includes countries such as Australia, Canada, Japan, Mexico, New Zealand, and Singapore, among others. It is expected to cover a market of around 500 million people and account for 13.5% of the global GDP. The agreement is seen as a major step towards free and fair trade, and it has been hailed as a game-changer for the global economy.
One of the key objectives of the CPTPP is to eliminate tariffs on goods and services, making it easier for businesses to trade with each other. This will not only benefit the member countries but also open up new opportunities for businesses to expand their reach and tap into new markets. However, it is important to note that this agreement does not cover all products and services. As mentioned earlier, staples such as rice, wheat, soybean, corn, dairy products, and sugar are not included in the agreement.
This has raised concerns among some people, who fear that this could have a negative impact on the agricultural sector. However, experts believe that this exclusion is actually a positive move for both the member countries and the global economy. By keeping these staples outside the ambit of the agreement, the CPTPP ensures that the domestic markets of member countries are not flooded with cheap imports, which could harm local farmers and producers.
Moreover, this exclusion also allows member countries to maintain their own regulations and standards for these products. This is crucial as these staples are an essential part of the daily diet for many people, and any compromise on quality could have serious health implications. By keeping them outside the ambit of the agreement, the CPTPP ensures that member countries have the freedom to regulate these products according to their own standards, without any interference from other countries.
Another important aspect to consider is that these staples are not completely excluded from the agreement. In fact, there are provisions that allow member countries to negotiate and include these products in the future. This means that if there is a need to trade these staples, member countries can come together and negotiate terms that are beneficial for all parties involved. This flexibility ensures that the interests of all member countries are taken into consideration.
It is also worth mentioning that the exclusion of these staples does not mean that they will not be traded at all. These products will still be traded, but under different agreements and regulations. For instance, the United States has a separate agreement with Japan for the trade of rice, and this will not be affected by the CPTPP. Similarly, other countries have their own agreements for the trade of these staples, and these will continue to operate as usual.
In conclusion, the exclusion of staples such as rice, wheat, soybean, corn, dairy products, and sugar from the ambit of the CPTPP is a positive move for both the member countries and the global economy. It ensures that the domestic markets of member countries are protected, while also allowing for flexibility in the future. This agreement is a step towards a more open and fair trade market, and it is expected to bring numerous benefits to the member countries and the global economy as a whole.
