The United Kingdom is expected to become the first non-founding member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This move will allow British businesses access to markets worth $10 trillion in the Indo-Pacific region. The CPTPP currently covers eleven countries, including Australia, Canada, Japan, New Zealand, Singapore, and Vietnam. This agreement accounts for 13% of global GDP and 15% of global trade.
Meeting Market Access Requirements
Britain has met the high standards of the deal’s market access requirements to join CPTPP. In addition, there was a resolution of a spat between the UK and Canada over agricultural market access earlier this month which smoothed the way for joining up. Canada raised market access issues during talks between Britain and CPTPP member nations in Vietnam, but these were resolved when Canada dealt with its demands separately in bilateral negotiations with the UK.
UK Trailblazing as a Non-Founding Member
Joining the CPTPP is a positive step in reorienting UK trade towards other faster-growing parts of the world, away from Europe. The UK is trailblazing by becoming the first non-founding member, changing the CPTPP from being a regional to global agreement. China’s application to join is next in line after Britain, which makes it in the UK’s interests to ensure acceding parties provide ambitious market access offers.
Benefits of Joining CPTPP
Scottish whisky exports and electronic/digital trade are expected to benefit from joining the CPTPP. Trade with CPTPP members currently accounts for 8% of British exports but is expected to grow rapidly after joining the trade deal. Joining the CPTPP would provide businesses with easier access to markets worth $10 trillion in the Indo-Pacific region.
Finalizing the Deal
Ministers from the CPTPP trade bloc will meet in a virtual ceremony to confirm Britain’s accession to the group late on Thursday, or early Friday for some member nations in Asia. The deal will be signed at a later time as the text needs to be legally verified and translated into various languages. Japan has led the UK’s accession to the bloc and the deal is not yet finalized but it is “very likely” to happen this week. The government is expected to provide an update on the matter soon.
In conclusion, the United Kingdom’s expected accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a significant move that allows British businesses access to new markets worth $10 trillion in the Indo-Pacific region. Despite Canada raising market access issues, they were resolved, paving the way for Britain to join CPTPP. Scottish whisky exports and electronic/digital trade are expected to benefit from joining CPTPP providing British businesses with easier access. Joining CPTPP would reorient UK trade towards faster-growing parts of the world and away from Europe, making it trailblazing global agreement rather than just regional. Ministers from the CPTPP will meet soon to finalize this deal.
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