The United Kingdom took a significant step forward on Sunday by formally signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade bloc. This move is expected to spur economic growth and provide British businesses with access to a vast market of over 500 million people.
The signing of the agreement, which had been agreed upon earlier this year, took place during UK Business and Trade Secretary Kemi Badenoch’s visit to Auckland. Badenoch, who is also leading the ongoing free trade agreement (FTA) negotiations with India, hailed the signing as a major post-Brexit victory for the country.
The CPTPP is a trade agreement among 11 countries located in the Asia-Pacific region, including Canada, Australia, Japan, and New Zealand. It aims to reduce trade barriers and promote economic cooperation, covering a wide range of sectors such as agriculture, manufacturing, services, and intellectual property.
For the UK, joining the CPTPP is seen as an opportunity to diversify its trade partnerships beyond Europe and tap into growing markets in the Asia-Pacific region. It provides a platform for British businesses to expand their reach and establish stronger ties with countries that have a combined GDP of around $13.5 trillion.
The agreement is expected to bring several benefits to the UK economy. By gaining access to a vast market, British companies can increase exports and attract foreign investment. This expansion of trade is projected to drive economic growth and create jobs in various sectors, boosting the country’s overall prosperity.
Furthermore, the CPTPP offers an avenue for the UK to strengthen its ties with existing trading partners and forge new relationships with countries that were previously untapped. The agreement promotes regulatory cooperation and sets high standards for areas such as labor rights, environmental protection, and intellectual property, which align with the UK’s vision for a responsible and sustainable trading system.
However, before the agreement can take effect, it needs to be ratified by the UK. This process will involve parliamentary scrutiny, allowing lawmakers to review the terms of the agreement and ensure it aligns with the country’s interests. Simultaneously, CPTPP member countries will complete their own legislative processes to admit Britain into the trading bloc.
The inclusion of the UK in the CPTPP is expected to enhance the bloc’s global influence and potentially attract more countries to join. It signals the UK’s commitment to open and rules-based trade, positioning itself as an attractive partner for other nations seeking to strengthen economic ties and expand market access.
It is worth noting that India, with whom the UK is concurrently negotiating a free trade agreement, is not a member of the CPTPP. However, the signing of the CPTPP trade bloc does not preclude the UK from pursuing trade agreements with other countries independently.
The formal signing of the CPTPP by the UK marks a significant milestone in its post-Brexit trade strategy. By joining this comprehensive trade bloc, the UK aims to unlock new opportunities, drive economic growth, and establish itself as a global trading hub. The agreement reflects the UK’s commitment to an open, inclusive, and rules-based international trading system, setting the stage for a prosperous future.
