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UK joins CPTPP, Trans-Pacific trade bloc

UK joins CPTPP, Trans-Pacific trade bloc

Photo: CLAUDIO REYES/AFP via Getty Images

This Friday (31), the UK government announced that it would be part of A Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)After two years of negotiations, it closed its largest commercial deal Brexit.

In this way, the United Kingdom becomes the 12th member and the first European country to be part of the CPTPP. Hence, with its entry, the total GDP will approach the region of USD 13.6 trillion. In addition, the inclusion of the British nation in the trading camp gives totality 500 million people and 15% of the world’s GDP.

“At heart, we are an open, free-trading nation and this deal demonstrates the real economic benefits of our post-Brexit independence,” UK Prime Minister Rishi Sunak said in a statement. “British companies will now have unrivaled access to markets from Europe to the South Pacific,” he added.

11 other countries in the trading bloc Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Further, the agreement is expected to be formally signed by the end of this year, after final approval by parliament and 11 member states.

Business Benefits of CPTPP

The agreement will bring key trade benefits to the UK, such as lower tariffs for British exports of goods to CPTPP countries, citing key products such as cheese, cars, chocolates, machinery and equipment, gin and whisky. Hence, the service sector will also benefit from reduced bureaucracy.

In total, the UK estimates that joining the CPTPP will boost its economy by £1.8 billion in the long term. The deal is estimated to increase wages by £800m over 2019.

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