Post Brexit Britain Eyes Up FTA With The Pacific-Rim States

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP is an update of the Trans-Pacific Partnership (TPP) agreement and is similar in many ways. The agreement includes provisions related to tariffs and quotas, intellectual property, foreign investment, labor and environmental standards, and dispute resolution mechanisms. The CPTPP creates a free trade zone between the 11 signatories that, together, represent more than 14% of global GDP. The CPTPP will eliminate, or Harmonize, tariffs among signatories and establish rules on everything from investment and labor rights to environmental protection and intellectual property. The agreement is designed to reduce trade barriers, create economic opportunities, and promote economic and technological cooperation among signatories.

The UK recently announced that it had entered into negotiations with the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) to join the 11-member alliance of Pacific-rim countries.

Joining the CPTPP would potentially provide UK businesses with tariff-free access to markets in all 11 countries, represent an estimated 1,294 million people and create a market worth more than $13 trillion. It would also open up the UK to new trade and investment opportunities and deeper links with the rest of the world. The UK officially launched its membership negotiations in July. The UK’s negotiations will involve trade deals on goods and services, intellectual property, government procurement and dispute resolution. The UK initially aimed to conclude negotiations by March 2021, however approval for CPTPP membership has been pushed back to the end of 2023.

It is anticipated that CPTPP association would improve the situation of each nation and region of the UK, with substantial progress forecasted to be observed in West Midlands, Scotland, and Northern Ireland. Wales may experience a £53 million positively impacting Gross Value Added (GVA), Northern Ireland could possibly gain £45 million, and Scotland is looking at a potential £163 million boost to its GVA after the UK accesses CPTPP.

It’s the view of Demie & Company Ltd that the UK's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) puts it at the core of a vibrant cluster of nations, as the world's economy shifts more and more towards the countries of the Pacific region. As these nations become more prosperous, the UK can look forward to the increased advantages of having full access to trading with them