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Britain has formally signed a treaty to join a major Indo-Pacific trading bloc. Supporters of Brexit say the move will boost UK growth but opponents say the benefits are marginal compared with EU trade.
The United Kingdom on Sunday formally signed a treaty to join a major Indo-Pacific bloc— what it said was the biggest trade deal since the country left the European Union at the beginning of 2020.
Business Minister Kemi Badenoch put her signature on the accession protocol for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Auckland, New Zealand.
“This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward-looking bloc is proof that the UK’s doors are open for business,” Badenoch said.
She later told Sky News that the pact meant that Britain has “a seat at the table in the fastest-growing region” and that other countries are queuing up to join the pact.
The broadcaster cited a government analysis that said the pact would boost UK exports by 1.7 billion pounds (€1.9 billion, $2.23 billion), imports to the UK by 1.6 billion pounds and gross domestic product (GDP) by £1.8 billion pounds in the long term.
The pact is expected to take effect in the second half of 2024.
“This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward-looking bloc is proof that the UK’s doors are open for business,” Badenoch said.
She later told Sky News that the pact meant that Britain has “a seat at the table in the fastest-growing region” and that other countries are queuing up to join the pact.
The broadcaster cited a government analysis that said the pact would boost UK exports by 1.7 billion pounds (€1.9 billion, $2.23 billion), imports to the UK by 1.6 billion pounds and gross domestic product (GDP) by £1.8 billion pounds in the long term.
The pact is expected to take effect in the second half of 2024.
What is CPTPP?
The CPTPP is a landmark pact agreed upon in 2018 that cuts trade barriers among 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The pact requires countries to eliminate or significantly reduce tariffs and make strong commitments to opening services and investment markets.
It also has rules addressing competition, intellectual property rights and protections for foreign companies.
CPTPP is seen as a bulwark against China’s dominance in the region, although Beijing has applied to join, along with Taiwan, Ukraine, Costa Rica, Uruguay and Ecuador.