The Impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership on the Global Value Chain of Manufacturing

Guohua Chen, Jianrui Zhou, Cheyuan Liu (), Fangzhou Liu, Chunyu Zhang () and Yuhan Su
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Guohua Chen: School of Economics and Management, Guangxi Normal University, Guilin 541004, China
Jianrui Zhou: School of Economics and Management, Guangxi Normal University, Guilin 541004, China
Cheyuan Liu: School of Economics and Management, Guangxi Normal University, Guilin 541004, China
Fangzhou Liu: School of Economics and Management, Guangxi Normal University, Guilin 541004, China
Chunyu Zhang: School of Economics and Management, Guangxi Normal University, Guilin 541004, China
Yuhan Su: School of Physics and Technology, Ningbo University, Ningbo 315211, China

Sustainability, 2025, vol. 17, issue 17, 1-23

Abstract: Manufacturing global value chains (GVCs) play a central role in shaping countries’ export competitiveness. However, existing studies have given limited attention to the impact of regional trade agreements (RTAs) on manufacturing GVCs. This study examines the effects of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) on manufacturing GVCs. Using the Global Trade Analysis Project (GTAP) model, based on the GTAP 10 database with dynamic recursion to 2025, this study simulates various scenarios of tariff and non-tariff barrier (NTB) reductions. This model is linked to a GVC accounting framework to evaluate member countries’ trade performance in manufacturing value added, as well as their participation and position in GVCs. The results show that the CPTPP and RCEP, when implemented separately, significantly boost bilateral value-added trade within their regions, with increases of 99.4% and 65.7%, respectively. Their combined effect further strengthens global value-added trade, raising it by 5.1%. Both agreements also promote greater GVC participation in most manufacturing sectors across member economies, although their influence on sectoral positioning differs across countries. Overall, the findings demonstrate that the CPTPP and RCEP are reshaping regional production networks and affecting manufacturing development in member states. They highlight the growing importance of RTAs in shaping value chains and underscore the need to revitalize global partnerships for sustainable development. For policymakers, the results provide timely evidence on how RTAs can be leveraged to support sustainable growth in manufacturing.

Keywords: CPTPP; RCEP; GTAP-GVC model; manufacturing industry; GVC (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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