UK strikes trade deal with Trans-Pacific Partnership
(MENAFN) The UK has reached a trade deal to become the first European member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is a free trade area of 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. This marks the UK's "biggest" trade deal since Brexit, according to a statement by the government.
The CPTPP is home to more than 500 million people and will be worth 15 percent of global GDP once the UK joins, with a total GDP of £11 trillion. The UK's agreement to join follows almost two years of "intense" negotiations by the Department of Business and Trade.
Joining the bloc is expected to boost the UK's economy by £1.8 billion (USD2.2 billion) in the long run, with wages forecast to increase by £800 million compared to 2019 levels. The statement also highlights that more than 99 percent of UK goods exports to CPTPP countries will now be eligible for zero tariffs, while total UK exports to CPTPP countries were worth £60.5 billion in the 12 months to the end of September 2022.
British Prime Minister Rishi Sunak noted that the UK is "an open and free-trading nation", and the deal demonstrates the economic benefits of post-Brexit freedoms. He added that joining the CPTPP puts the UK at the centre of a dynamic and growing group of Pacific economies, granting British businesses unparalleled access to markets from Europe to the South Pacific.
UK's Business and Trade Secretary Kemi Badenoch called the agreement an "important moment" for the UK, and said that joining the CPTPP sends a powerful signal that the UK is open for business and using its post-Brexit freedoms to reach out to new markets around the world and grow its economy. She noted that the deal is about giving British businesses improved access to the countries that will be gateways to the wider Indo-Pacific region, which is projected to make up the majority of global growth in the future.
Overall, this trade deal is a significant move for the UK as it seeks to expand its trade relationships beyond Europe and establish itself as a major player in the global economy. The CPTPP provides an opportunity for the UK to increase its exports to these 11 member countries and take advantage of the projected growth in the Indo-Pacific region. The deal also highlights the UK's commitment to free trade and open markets, which will likely attract more foreign investment to the country.
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