On Friday, the UK said it had reached an agreement to join an 11-country trade pact, including Japan and Australia, as it seeks to deepen ties in the region after it leaves the European Union.
Prime Minister Rishi Sunak said the UK has agreed to join the Pacific Partnership, better known by its acronym CPTPP. “Joining the CPTPP trade bloc places the UK at the center of a dynamic and growing group of Pacific economies,” Sunak said in a statement, adding that the deal demonstrates “the real economic benefits of our post-Brexit freedoms.”
The UK is looking to build trade ties after leaving the EU. in 2020 and moved to geographically distant but rapidly growing countries. The current CPTPP member countries are Australia, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and Brunei.
What are the benefits?
According to the British side, the agreement will allow the country to trade in the wider Pacific region without tariffs on the export of food, beverages and cars. It will have access to a market of around 500 million people valued at 15% of global GDP once the UK formally joins the group. Its exports to 11 countries will increase by 65% and reach 43 billion euros in 2030.
Near. The UK government estimates that in the long term, its membership in the trade bloc will boost the domestic economy by £1.8bn and lead to wage increases of £800m compared to 2019 levels.
“The Pacific region is projected to grow twice as fast as Europe, so UK companies should consider their regional footprint,” said Sally Jones, EY partner in trade policy and strategy.
After Brexit, the UK signed new trade agreements with Australia, New Zealand and Japan in 2020. She is also negotiating with Canada and Mexico.
At the same time, Japan asked the US to return the trade deal after Washington formally withdrew from it in 2017 under Donald Trump. Japan’s Chief Cabinet Secretary Hirokazu Matsuno said it was “desirable” for the US to return to the trade deal and that Tokyo would press Washington to join it.
Source: Reuters.
Source: Kathimerini
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