Britain set to join Indo-Pacific trade bloc CPTPP
W&W Insights
W&W uses creativity, channels, and market insights to help brands achieve sustainable growth efficiently.
Business and Trade Secretary Kemi Badenoch has formally signed a significant deal to join the Indo-Pacific trading bloc CPTPP. This marks the beginning of the UK’s membership of a modern and ambitious trade deal spanning 12 economies including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK, with a combined GDP of ￡12trn and 15% of global GDP.
The Government released new figures showing CPTPP-owned businesses employed one in 100 UK workers, with membership expected to significantly increase investment in the UK by CPTPP countries, already worth ￡182bn in 2021, as protections for investors will be guaranteed by Britain’s membership in the bloc. More than 99% of UK goods exported to CPTPP countries will be eligible for zero tariffs, such as British whisky and cars, and UK businesses will be given unparalleled access to markets of over 500 million people. Therefore, Britain’s entry signals a significant step in re-establishing Britain’s leverage within global trade following Brexit.
Although initial gains from the deal are estimated to be fairly small due to already established deals with most of the participating countries, with the exception of Brunei and Malaysia, with some estimating a gain of ￡1.8bn, or 0.08% of Britain’s GDP, over the next ten years. Additionally, the odds are low of the US joining any free trade deals anytime soon, which would be hugely beneficial to the British economy. However, a more optimistic perspective points to the huge growth potential of member states such as Vietnam which has been experiencing huge growth, becoming an increasingly popular manufacturing alternative to China. Some of these member states are playing an increasingly important role in global trade, and so longer-term these deals may be hugely beneficial.
Sources:
Director Corporate Culture Development
1 年Dass dasT der are derb tea