The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has officially come into effect. The 11-member agreement accounts for 13 per cent of global GDP and 14 per cent of world trade. CPTPP took shape after the US pulled out of the Trans-Pacific Partnership (TPP).

Now, it is possible the US will rejoin the new accord. The US' real income under the original TPP would have increased by 0.5 per cent of its GDP. After the US pulled out, the country not only gave up those gains but also lost an additional $2 billion in income because US firms suffered a disadvantage in TPP markets.

A survey finds that 61 per cent of Americans want the US to participate in the CPTPP. The US will not be reluctant to participate in the free trade deal if the agreements benefit it the most. The Trans-Pacific Partnership aimed to shape new rules for world trade excluding China.

To form an alternative to TPP, 16 countries, including China, Japan and Asean members, launched negotiations in 2012 on the Regional Comprehensive Economic Partnership (RCEP). The talks are expected to make substantive progress in 2019. Once completed, the agreement will cover 3.4 billion people and about 32 per cent of the global economy.