The United Kingdom has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking its largest trade deal since exiting the European Union in 2020.
Minister of Business and Trade, Kimi Badenoch, signed the trade bloc membership comprising the Indian and Pacific Ocean regions. This move brings British companies one step closer to selling in a market of 500 million people with fewer barriers. Britain became the first new country to join the agreement since its establishment in 2018, paving the way for other potential applicants such as China and Taiwan.
Speaking at the signing ceremony, the UK minister stated that her country is pleased to become a new treaty member. She added, “This is a modern, ambitious agreement, and our membership in this exciting, forward-looking bloc is evidence that the doors of the United Kingdom are open for trade.”
The agreement still requires ratification by the British government.
According to the UK Department for International Trade, the agreement includes 12 countries with a combined GDP of £12.5 trillion.
The member countries, including the United Kingdom, represent 15% of global GDP.
China, Taiwan, Ukraine, Costa Rica, and Uruguay have also expressed interest in joining the agreement.
Economic Impact When the agreement was announced at the end of March to join the Pacific Free Trade Partnership, London estimated that the partnership’s contribution to the British economy would reach £1.8 billion.
In a document published in June 2021, the UK government indicated that its impact on GDP would amount to 0.08%.
Since it departed from the European Union and the European market, the United Kingdom has sought to establish comprehensive trade agreements to strengthen its international trade.
London has concluded trade treaties specifically with the European Union and other European countries, as well as more distant countries such as Australia, New Zealand, and Singapore. Negotiations are also underway with India and Canada.
On the other hand, the long-awaited agreement with the United States remains in limbo.
