The UK’s membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) marks a significant shift in its post-Brexit trade strategy, with potential economic benefits of up to $2.5 billion per year.
UK Joins Indo-Pacific Trade Bloc as First European Member
The United Kingdom has become the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a significant development in its post-Brexit trade strategy. The UK’s membership came into effect on Sunday, making it the first European country to join the Indo-Pacific bloc.
Boosting Britain’s Economy
The move is expected to boost Britain’s struggling economy by as much as $2.5 billion (roughly €2.4 billion) per year. Officials hope that membership in the CPTPP will help the UK strike new trade deals and strengthen its existing relationships with other member states.
What is the CPTPP?
The CPTPP was formed after the US withdrew from the planned Trans-Pacific Partnership (TPP) bloc following Donald Trump’s 2016 election. The agreement retains most of the provisions of the original TPP and lowers trade barriers between member states on various goods. However, it offers less comprehensive free trade than the UK enjoys with EU member states.
Significance of CPTPP Membership
The CPTPP is seen as an economic counterweight to China in the Pacific region, although China is also seeking membership. The bloc’s members currently account for roughly 15% of global GDP and a population of around half a billion. The UK’s membership marks a significant shift in its trade strategy, which has been criticized for being too focused on EU relations.
UK’s Trade Strategy
The previous Conservative government signed the accession treaty last year, with most members of the bloc having since ratified the UK’s entry. Labour’s Business Secretary Jonathan Reynolds said that the country is “uniquely placed to take advantage of exciting new markets” and strengthen existing relationships. The government has promised to publish a trade strategy in 2025 that will help businesses and consumers grow the economy.
The UK’s membership in the CPTPP marks an important step in its post-Brexit trade strategy, which aims to strike new deals and strengthen relationships with other member states. As the first European country to join the Indo-Pacific bloc, the UK is poised to take advantage of exciting new markets and opportunities for growth.
