KEY ELEMENTS OF CHAPTER 2 OF THE TPP: NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS

Chapter 2 of the TPP deals with the treatment of manufactured and agricultural goods traded between the Parties. Accordingly, this chapter regulates tariff reduction commitments, norms on import and export constraints, as well as defining import and export licensing procedures. Another of the objectives of chapter 2 is to regulate governmental policies that distort markets. Furthermore, the TPP Parties commit once again to implement and comply with related WTO Agreements, furthering the efforts to improve norms on trade of goods. They also agree not to use performance requirements that some countries do require in order to obtain custom duties benefits.

The preferential market access will boost trade between TPP Parties by 800 million people; likewise it will contribute to promotion of high quality jobs in the 12 economies.

Tariffs and Fees

The Parties agree to lower their custom duties, in accordance with the annexes to chapter 2. Furthermore, this chapter lays down circumstances under which releases from obligation of customs duties will be permitted, as well as circumstances under which TPP Parties may allow goods to enter or re-enter a market duty free (such as goods temporarily exported for repair or alteration).

Customs and other Duties on Information Technology Products

The Parties agree to implement the WTO Information Technology Agreement, which mandates to eliminate customs and related duties from information technology products (such as computers, software, scientific instruments etc.).

Treatment No Less Favorable than Like Domestic Goods

The Parties agree to act in accordance with the national treatment obligation in the meaning of Article III of the GATT 1994. Such obligation prescribes that domestically produced and foreign goods, produced within the territory of a State Party, that are like shall be treated equally.

Import and Export Constraints and other Non-Tariff Barriers to Trade

The Parties agree, in compliance with their WTO obligations, not to impose import or export restrictions for goods bound for another State Party, with the exceptions set out by Article XI of the GATT. Such obligations apply to remanufactured goods, that is goods being rebuilt from the original using new or used parts.

The chapter also sets out obligations on import licensing preventing TPP Parties from adopting or maintaining measures which are inconsistent with the WTO Agreement on Import Licensing Procedures.  

The Parties agree that export duties and taxes are permitted only in limited circumstances as they disadvantage foreign exporters by increasing the cost of the product on the international market, which, in return, curbs exports.

Export restrictions due to food security reasons

Chapter 2 allows to temporary restrict exports due to food security reasons, working together with the WTO and implementing its commitments.

Agricultural Export Subsidies

The Parties agree not to adopt nor maintain export subsidies on agricultural goods that will enter the market of other TPP Parties. Likewise, also in this field they agree to work closely with the WTO.

Trade in Products of Biotechnology

Chapter 2 also includes a provision addressed to biotechnology products, that is genetically modified products. The provision does not mandate the Parties to alter the way they regulate the trade of such products. One of the main objectives of the provision is to improve the information sharing.

Transparency and Consultation

In accordance with WTO commitments, chapter 2 mandates to publish any requirement may relevant to trade. Furthermore, two a Committee on Trade in Goods and a Committee on Agricultural Trade are established.