The United Kingom will join an 11-nation Indo-Pacific free-trade bloc “Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)“, becoming the first new member since its creation.
- Britain concluded two years of negotiations with a formal agreement to become the 12th member of the CPTPP.
Key points
- Prime Minister Rishi Sunak’s government sees membership of the CPTPP, which includes Australia, Japan and Canada, as a boost for economic growth and geopolitical relations.
- The U.K. expects growth of $2.23 billion each year over the long-term, a figure that could rise if other countries join the bloc.
- Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam are the other eight members.
- CPTPP bloc, which is home to 500 million people, will be worth 15% of global GDP once the U.K. joins.
- Membership will eventually ensure zero-tariff trade across a range of import and export sectors, with greater U.K. access to Mexico, Canada and Japan for dairy exports, and a boost to Britain’s automotive and alcohol industries, particularly through the export of spirits to Malaysia.
