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COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)

The CPTPP Agreement provides for 4 key obligations:

  • National Treatment (NT): The Member State must ensure that service providers in other CPTPP countries are treated no less favorably than domestic service providers.
  • Most favored nation treatment (MFN): A Member State must ensure that service providers of a CPTPP are treated no less favorably than service providers of other member countries or of any other any country or territory that is not a member of the agreement.
  • Market Access (MA): Member States are not allowed to maintain market access restrictions on foreign service suppliers. Restrictions on market access are classified into 5 categories as follows: (i) Restrictions on the number of service providers; (ii) Restrictions on the total value of transactions or assets; (iii) Restrictions on the total number of service activities or the number of services provided; (iv) Limits on the number of employees; and (v) Restrictions on the form of business establishment.
  • Local presence (LP): Member States may not require CPTPP service providers to establish or maintain a representative office or any form of company or require them to respond. Meet the requirements for permanent residence as a condition of the provision of the service.

Major Investment Obligations

In addition to the obligations of national treatment (NT) and most favored nation treatment (MFN) as in the field of trade and service, the Investment chapter of the CPTPP Agreement has some main obligations as follows:

  • Minimum standard of treatment: The countries commit to give foreign investors fair and adequate treatment when conducting criminal, civil or administrative proceedings. In addition, CPTPP countries need to ensure safety for foreign investors' investments in accordance with international law.
  • Deprivation of ownership: When it is absolutely necessary, for example, for public purposes, governments can take ownership of foreign investors. However, this must be done on a non-discriminatory basis and with adequate compensation for foreign investors, in accordance with the provisions of law and the obligations of the CPTPP Agreement.
  • Money transfer: Foreign investors are allowed to freely transfer their investment money or profits earned from investing activities. However, in some cases, governments of CPTPP countries may restrict this activity of foreign investors, for example for the purpose of capital control in the context of balance of payments crisis or crisis. health.
  • Do not impose "performance requirements" (PR): Countries are not allowed to maintain requirements that force foreign investors to fulfill in order to obtain investment licenses or enjoy investment incentives.
  • Does not impose personnel appointment requirements (SMBD): Countries are not required to require foreign-invested companies to appoint senior personnel of a certain nationality.