The CPTPP Enters Into Force For Chile ' But Mind The Fine Print

• Jurisdiction: United States,Federal
• Law Firm: Steptoe & Johnson
• Subject Matter: International Law, International Trade & Investment
• Author: Mr Christophe Bondy, Alexandre Genest and Emmanuel Giakoumakis
• Published date: 17 March 2023

On February 21, 2023, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) formally entered into force for Chile, after undergoing an intense, four-year legislative process. The CPTPP covers the full range of modern trade agreements, including market access for goods and services, public procurement disciplines, temporary entry, and investment protection, among others. Despite the CPTPP's entry into force, the future of investor-State dispute settlement (ISDS) in Chile remains a point of controversy.

Chile and the CPTPP

Eleven countries signed the CPTPP in Santiago, Chile, on the March 8, 2018, after they, all members of the original Trans-Pacific Partnership (TPP), regrouped and relaunched the TPP as the CPTPP following President Trump's withdrawal of the United States. The CPTPP entered into force on December 30, 2018 for the six countries that ratified it by that date (Australia, Canada, Japan, Mexico, New Zealand and Singapore). It entered into force for Vietnam on January 14, 2019, for Peru on September 19, 2021, and for Malaysia on November 29, 2022.

The Chilean Senate approved the CPTPP on October 11, 2022. The Chilean Government deposited its instrument of ratification notifying the conclusion of internal legal procedures on December 22, 2022. The CPTPP formally entered into force in respect of Chile on February 21, 2023 (pursuant to Supreme Decree No. 318 of 2022).

Following Chile's ratification, Brunei is now the only signatory to the CPTPP whose ratification process is still ongoing. At the same time, several countries, including the United Kingdom, China, Ecuador, Costa Rica, and Uruguay, have expressed their desire to accede to the CPTPP. The United Kingdom's accession process is currently under examination pursuant to the CPTPP's "high standards," with the 7^th meeting of the CPTPP Commission due to take place in New Zealand in 2023.

The CPTPP is a comprehensive trade, investment, and economic integration agreement. It incorporates by reference the provisions of the TPP (itself not in force), with the exception of a targeted subset of suspended provisions that had originally been U.S. "asks" and that the remaining members decided to set aside in light of the U.S.'s withdrawal. The CPTPP incorporates, for example, detailed rules from the TPP concerning market access for goods and services, rules of origin, sanitary and phytosanitary measures, and the protection of the environment. It also provides for rules on...