The United Kingdom has formally signed up to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as it looks beyond Europe for trade opportunities post-Brexit. The CPTPP, which includes countries like Canada, Japan, Australia, and New Zealand, has been seen as a counterbalance against Chinese dominance in the region. The UK’s accession to the bloc makes it the first new member and the first European nation to join since its creation in 2018.
The signing of the accession protocol by the UK’s Business and Trade Secretary, Kemi Badenoch, in New Zealand marks a significant milestone in the country’s Global Britain strategy following its departure from the European Union. The CPTPP agreement is expected to cut tariffs for UK exports to member countries, which collectively have a GDP of £12 trillion ($15.7 trillion) and account for 15% of global GDP.
The UK’s membership in the CPTPP will provide access to a market of over 500 million people and open up trade opportunities in the wider region. The deal is expected to come into force in the second half of next year after undergoing parliamentary scrutiny and legislation.
The announcement of the UK’s membership in the CPTPP has received mixed reactions. Proponents of Brexit view it as an opportunity for the UK to join trade blocs with faster-growing economies and enhance its global economic and geopolitical standing. However, critics argue that it will not fully compensate for the economic impact of leaving the EU, which remains the world’s largest trading bloc.
According to analysts, the UK’s accession to the CPTPP is estimated to provide an eventual economic boost of £1.8 billion ($2.2 billion), equivalent to a 0.08% annual increase in GDP. However, the country’s Brexit deal with Brussels is predicted to reduce long-term productivity by 4.0% compared to its EU membership, according to the Office for Budget Responsibility.
Joining the CPTPP is a significant step for the UK as it seeks to diversify its trading partners and expand beyond European markets. By forging new alliances in the Indo-Pacific region, the UK aims to tap into the economic potential of dynamic economies and strengthen its position on the global stage. As the first European nation to join the CPTPP, the UK is opening up avenues for increased trade and collaboration in the Asia-Pacific region.
In conclusion, the UK signing the CPTPP accession protocol marks a pivotal moment in its post-Brexit trade strategy. The move signifies the country’s determination to look beyond Europe for trade opportunities and establish itself as a global trading nation. While the benefits and drawbacks of joining the CPTPP are still debated, the UK’s membership in the bloc presents new prospects for businesses and reinforces its commitment to a Global Britain approach.
