The United Kingdom Joins Asia-Pacific Trade Bloc
Flags of the countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
December 15, 2024 Hour: 9:09 am
The CPTPP also includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
On Sunday, the United Kingdom became the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), enabling it to trade with minimal barriers in an Asia-Pacific region that accounts for 15% of the global GDP.
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After beginning the accession process in 2021, the UK’s membership officially takes effect today. British companies can now trade on favorable terms with eight of the 11 member countries that formed the treaty in 2018 and have already ratified it. These countries are Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Malaysia, and Brunei.
Starting December 24, the UK will also begin almost tariff-free trade with Australia, while Canada and Mexico are expected to ratify their membership soon. Trade with these two countries would begin 60 days after their ratification.
The British government estimates that access to this Asia-Pacific trade pact could boost the UK economy by up to £2 billion ($2.4 billion) annually, compared to what the GDP would have been without this agreement in projections through 2040.
International economic analysts predict that the CPTPP will expand further in the coming years, with Costa Rica already in the process of negotiating its accession. British Trade Minister Jonathan Reynolds highlighted that the UK is “uniquely positioned to benefit from new markets while strengthening relationships with existing ones.”
“Today’s announcement is further proof that the UK is a fantastic place to do business, with an open and outward-looking economy driving growth that people will feel in their communities,” he stated.
Reynolds also announced that in 2025, he will present a long-term trade strategy aimed at supporting businesses and consumers and driving national economic growth, which has been the top priority for the Labour government since its electoral victory on July 4.
teleSUR/ JF Source: EFE