UK joins Trans-Pacific Agreement after years of negotiations
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Secretary Kemi Badenoch announced that the UK will join the largest free-trade agreement after reaching an agreement with signatory states.
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Britain's Prime Minister Rishi Sunak gestures as he attends a Q&A session during a Connect event at a Boxing Club in Chelmsford, Essex, England, Monday, March 27, 2023. (AP)
UK Secretary of State for International Trade Kemi Badenoch announced that the United Kingdom will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
🌏It’s nearly 1am UK time and my counterparts and I have only just officially concluded negotiations to join the #CPTPP bloc!
— Kemi Badenoch (@KemiBadenoch) March 30, 2023
Fantastic news for 🇬🇧UK business & consumers as we increase trade with the dynamic Indo-Pacific region providing the future of global GDP growth📈 pic.twitter.com/DuxDUxrqce
The UK will be the first European country to join the CPTPP, which currently includes Canada, Australia, New Zealand, Singapore, Malaysia, Brunei, Vietnam, Japan, Mexico, Chile, and Peru.
According to the Ministry, the UK would not have been able to join such a trade agreement if it were still part of the European Union.
The United States was an initial signatory of the agreement in 2016. However, after Trump assumed office. the US withdrew from the trade agreement that it had worked diligently on formulating.
The CPTPP is one of the world’s largest free-trade agreements encompassing more than 500 million of the world’s population. The deal will now account for $13.6 trillion of the world's economy. A UK government's press release stated that "It is estimated that joining (the agreement) will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels."
Almost all UK-produced goods will be subject to zero tariffs when exported to signatories of the agreement.
UK exports to CPTPP member states are estimated at around $75 billion, with trade expected to grow once the agreement is put into effect.
PM Rishi Sunak said: "Joining the CPTPP trade bloc puts the UK at the center of a dynamic and growing group of Pacific economies, as the first new nation and first European country to join. British businesses will now enjoy unparalleled access to markets from Europe to the south Pacific"
Taiwan attempted to join the agreement in 2021. However, joining predicates the approval of all members. China's economic sway over the decisions of these countries has stood in the way of Taiwanese membership.
It is worth noting that the deal has been ratified by all signatories except Brunei and has gone into effect since 2018.
