The openness of the automotive sector in the CPTPP has a wide range of regulations and a relief program with exceptions.

According to a World Trade Organization (WTO) report, CPTPP contains numerous motor vehicle-specific disciplines throughout its chapters, annexes and appendices, as well as in bilateral side letters. 

CPTPP is a treaty that includes, by reference, the provisions of the original Trans-Pacific Partnership Agreement (TPP). This agreement was signed on February 4, 2016 in Auckland, New Zealand, albeit with some provisions suspended. 

The text of the CPTPP, which details both the additions and suspensions, is available on the Depositary’s website in New Zealand. In addition, the United Kingdom’s Protocol of Accession to CPTPP is accessible on this page.

Automotive sector in CPTPP

In the case of Malaysia, the side letters signed with Canada and Mexico deal with rules of origin. They also promote technical cooperation and capacity building in areas of mutual interest in the automotive sector. The side letter signed with Canada also addresses restrictions and additional costs applied to motor vehicles.

The chart below shows the final phase of liberalization for new automotive goods under HS headings 8702 to 8705. In Brunei and Chile, imports of all motor vehicles became duty free upon entry into force of CPTPP in 2023.

In the case of Malaysia, imports of special vehicles became duty-free in the same year. For larger passenger vehicles and trucks (HS headings 8702 and 8704), they will be duty free in 2028. Finally, imports of smaller passenger vehicles (HS heading 8703) will be duty free in 2030.

United Kingdom

On February 1, 2021, the United Kingdom formally submitted its application to join CPTPP. Subsequently, on March 31, 2023, the UK and treaty members finalized negotiations on its accession.

Then, on July 16, 2023, CPTPP members formally approved the UK’s application. The UK is now expected to join the treaty once the formal agreement is ratified by both the UK and each state party.