Written by Chiou Zhi Qi
Chapter 26 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) focuses on the transparency and anti-corruption measures adopted by the Parties, namely the 11 Countries that have ratified the CPTPP. This provision plays a crucial role in fostering trust and accountability in international trade and investment, particularly for countries like Malaysia.
Transparency
Article 26.2 requires each Party to promptly publish or make available its laws, regulations, procedures, and administrative rulings related to the CPTPP (e.g., investment, trade, goods exports or imports). This ensures that stakeholders can access the relevant legal framework, promoting understanding and compliance while reducing the risk of unintentional violations. Moreover, Chapter 26 provides stakeholders the opportunity to comment on draft laws or regulations. This consultative process ensures that laws and regulations are drafted comprehensively, protecting all Parties to the CPTPP and stakeholders, in particular, engaging in trade and investment within the Trans-Pacific region.
Additionally, Article 26.4 calls for the establishment of judicial, quasi-judicial, or administrative tribunals to review administrative actions taken by relevant authorities. These tribunals ensure that parties involved in such proceedings have the right to defend themselves, thereby reinforcing fairness and accountability.
Anti-Corruption
By ratifying the CPTPP, each Party reaffirms its commitment to eliminating bribery and corruption in international trade and investment.
Article 26.7 requires each Party to adopt legislative measures to combat corruption, including criminal penalties for those involved. Corruption under this Article is defined to include:
- Bribing a public official: Offering or giving an undue advantage to a public official (directly or indirectly) to influence their official duties.
- Accepting bribes: A public official soliciting or accepting an undue advantage (directly or indirectly) to act or not act in their official capacity.
- Bribing foreign or international officials: Offering or giving an undue advantage to a foreign public official or an official of an international organization to gain improper business advantages.
- Assisting in corruption: Helping, encouraging, or conspiring with others to commit any of the above acts.
In addition to legislative measures, Article 26.8 encourages Parties to promote integrity among public officials. Measures include:
- Providing training programs to public officials.
- Promoting transparency in public officials’ behaviour.
- Implementing conflict-of-interest policies.
- Requiring officials to declare outside activities, investments, and assets.
- Ensuring public officials report any instances of corruption they become aware of.
Beyond public officials, the CPTPP emphasises anti-corruption measures within the private sector and society. These include raising public awareness through education campaigns and encouraging small and medium enterprises to develop internal controls to prevent bribery and corruption.
Conclusion
Chapter 26 of the CPTPP, which governs transparency and anti-corruption in international trade and investment, ensures fairness and accountability among its members. These measures foster stability and trust in trade and investment activities between the Parties, directly benefiting Malaysia and other participating countries. Additionally, Annex 26-A of the CPTPP specifically addresses transparency and procedural fairness concerning pharmaceutical products and medical devices.
For a brief overview on Malaysia and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) click here.