The United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) marks a significant shift in its post-Brexit trade strategy. This move positions the UK within a dynamic, Asia-Pacific-focused trade bloc, comprising 12 nations and around 500 million people, and accounting for 13% of global GDP.
Why CPTPP?
For the UK, joining CPTPP offers a gateway to the fast-growing economies of the Indo-Pacific region. This aligns with the UK government’s strategic tilt towards this area, recognizing its increasing importance in global trade and economics. CPTPP membership is expected to bring several benefits:
- Increased Market Access: The agreement aims to reduce or eliminate tariffs on a wide range of goods, opening up new opportunities for UK businesses to export to CPTPP member countries.
- Rules of Origin: These provisions may benefit the UK’s automotive and clean energy sectors.
- Digital Trade Boost: CPTPP promotes seamless data flows and prohibits data localization mandates, which could greatly benefit the UK’s services sector.
Economic and Strategic Implications
While the UK already has existing trade agreements with many CPTPP members, this agreement is the first with Malaysia and Brunei. The UK government anticipates a boost to the UK economy. Beyond economics, CPTPP membership carries strategic weight, strengthening the UK’s presence and influence in the Indo-Pacific and fostering stronger relationships with key allies.
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