Analysis: Trade in Services between the EU and CPTPP: Pathways for deeper cooperation

As pressure on the multilateral trading system grows, interest in closer EU–CPTPP cooperation is increasing. This analysis finds that trade in services is no major barrier and highlights digital trade, telecommunications and investment as key areas for cooperation

Hillevi Pårup, why has cooperation between the EU and CPTPP attracted growing attention in recent years? 

The growing interest reflects increasing pressure on the multilateral trading system and a desire among many economies to strengthen cooperation based on shared rules and principles. CPTPP has emerged as an important framework for high-standard trade rules in the Indo-Pacific region, while the EU has expressed a clear ambition to deepen cooperation with like-minded partners. Together, they represent a significant share of the global economy and trade which makes closer cooperation strategically relevant.

To what extent do the EU’s and CPTPP’s frameworks for trade in services align?

The EU and CPTPP have broadly similar regulatory frameworks in many areas of trade in services. While there are important differences in some areas, the overall comparison suggests that the existing frameworks provide a solid foundation for closer cooperation. The main challenges are therefore less about services rules themselves and more about political priorities and how cooperation is organised in practice.

Which areas of trade in services show the greatest convergence, and where do the most significant differences remain?

The greatest convergence is found in cross-border trade in services, telecommunications, and investment and establishment. The most significant differences remain in digital trade and the movement of business persons. In digital trade, the key issue is how to balance free data flows with data protection. In mobility, differences reflect labour market sensitivities and the diversity of commitments across CPTPP members.

What forms of cooperation are most realistic in the near term? 

The most realistic option is pragmatic and incremental cooperation between the EU and CPTPP rather than full EU accession to the agreement. This could include regulatory dialogues, technical exchanges, pilot projects, and cooperation on issues such as domestic regulation, professional services, telecommunications, and digital trade. Cooperation should build on existing CPTPP commitments and mechanisms and avoid overly resource-intensive institutional formats.

What role could EU–CPTPP cooperation play in shaping future international rules on trade in services?

Many of the most important trade policy questions today concern areas where international rules are still evolving, particularly digital trade. If the EU and CPTPP countries can develop common approaches on issues such as cross-border data flows or digital transactions these could influence future international rule-making. Because the EU and CPTPP together represent a large and diverse group of economies, agreements reached between them may be more likely to gain broader international acceptance than initiatives developed by a smaller group of like-minded countries.

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The National Board of Trade is the Swedish government agency for international trade, the EU internal market and trade policy. Our mission is to facilitate free and open trade with transparent rules as well as free movement in the EU internal market. We provide the Swedish Government with independent analyses, reports and policy recommendations and take into account the views of businesses of all sizes in international trade policy-related matters.