The CPTPP dilemma: Economic merit versus geopolitical calculation
The Interpreter, Lowy Institute
“Regional trade arrangements may however offer one path to keeping the flickering flame of trade multilateralism alive. Both the CPTPP [Comprehensive and Progressive Agreement for Trans-Pacific Partnership] and the 15 country Regional Comprehensive Economic Partnership (RCEP) hold out the promise of expanded membership. CPTPP is a gold plated trade agreement in terms of the standards that it sets. Importantly, it is also open to countries outside the region. The United Kingdom, for example, is a member. So this is a mechanism for pushing out the boundaries of trade liberalisation, using a regional platform to slowly rebuild a broader constituency of support beyond the latticework of arrangements in the Indo-Pacific. A structure which falls short of global but is more than regional, extending into Europe.”
“Trade liberalisation, for all its challenges and compromises, serves the collective good. It is not zero sum. It can lift all boats. It is not immune from geopolitics but nor should it be held hostage to geopolitics. We live in an interconnected world but that does not mean we should deliberately weigh down trade arrangements with geopolitical and security baggage. That is one reason why if Australia does go down the path of negotiating a security agreement with the European Union it would be quite separate to any trade agreement.”