U.K. to join trans-Pacific partnership trade treaty
- The U.K. on Friday acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with Prime Minister Rishi Sunak describing the outcome as an example of “post-Brexit freedoms”. The agreement will now need to be ratified by Westminster and each of the CPTPP countries.
Points to ponder:
- The CPTPP is a trading bloc consisting of 11 countries located in the Asia-Pacific region, including Australia, Canada, Japan, Mexico, New Zealand, Singapore, and Vietnam, among others.
- The CPTPP was originally negotiated as the Trans-Pacific Partnership (TPP) but was renamed and amended after the US withdrew from the agreement under the Trump administration.
- The CPTPP aims to reduce trade barriers between member countries, including tariffs and regulations, to promote economic growth and investment.
- The UK has decided to join the CPTPP after leaving the European Union, as part of its efforts to establish new trade relationships and expand its global trade.
- The UK government claims that joining the CPTPP will provide economic benefits, including the elimination of tariffs on over 99% of British exports, particularly in key sectors such as cars, cheese, chocolate, gin, machinery, and whisky.
- The UK government also sees the CPTPP as a “gateway” to the Indo-Pacific region, which is projected to account for a majority of global economic growth in the future.
- By joining the CPTPP, the UK will also have a say in whether China is allowed to join the treaty, as well as access to other potential trade partners in the region.
- The CPTPP will need to be ratified by the UK government and each member country before it comes into force for the UK.
- The UK government believes that the economic benefits of joining the CPTPP will help offset the economic losses from leaving the EU, although this remains a subject of debate.