Jiji Press DA NANG, Vietnam (Jiji Press) — A new free trade deal on which 11 signatories to the Trans-Pacific Partnership have reached a basic agreement is not expected to take effect for at least two years.
After signing the new TPP by the end of the first half of 2018, the 11 countries will begin work to win respective parliamentary approvals for the deal.
The original TPP, agreed by the 11 countries and the United States in October 2015, had to be ratified by six signatories that together accounted for 85 percent or more of the 12 countries’ total gross domestic product, to enter into force.
The requirement, intended to make it impossible for the free trade agreement to take effect without the participation of the United States, the world’s largest economy, will not apply to the new TPP.
In reaching the broad agreement at a ministerial meeting in Da Nang, Vietnam, on Wednesday, the 11 countries scrapped the GDP criteria and introduced instead a requirement for the new TPP’s effectuation that a majority of signatories complete procedures to secure parliamentary authorization.