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Effects of the comprehensive and progressive agreement for trans‐pacific partnership

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  • Chunding Li
  • John Whalley

Abstract

This paper uses a numerical multi‐country and multi‐sector general equilibrium model with endogenous trade imbalance and trade cost to simulate the effects of the Comprehensive and Progressive Agreement for Trans‐Pacific Partnership (CPTPP) and its future member expansion. Simulation results show that most member countries will benefit from trade integration and that most non‐member countries will lose due to the exclusion effects of the regional trade agreement, but effects for specific countries differ. The entry of the US, China, India and the EU to the CPTPP will significantly increase member countries’ benefits, and their entry will decrease the losses of non‐member countries. The US withdrawal from the CPTPP has a negative effect on the US, which will increase as more countries join. The world as a whole will gain from the trade deal.

Suggested Citation

  • Chunding Li & John Whalley, 2021. "Effects of the comprehensive and progressive agreement for trans‐pacific partnership," The World Economy, Wiley Blackwell, vol. 44(5), pages 1312-1337, May.
    • Handle: RePEc:bla:worlde:v:44:y:2021:i:5:p:1312-1337
    DOI: 10.1111/twec.13026
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    References listed on IDEAS

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    Cited by:

    1. Hayakawa, Kazunobu & Jongwanich, Juthathip & Kohpaiboon, Archanun, 2022. "The trade effect of non-tariff measures in a high-quality trade agreement," IDE Discussion Papers 871, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Cao, Li & Jiang, Junhua & Piljak, Vanja, 2023. "Did mega-regional trade agreements reshuffle the financial influence of the US, China, and Japan in ASEAN? Evidence from the volatility-spillover effects," Research in International Business and Finance, Elsevier, vol. 65(C).

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