Jakarta –
Prime Minister Rishi Sunak said on Friday (3/31) Britain had agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) bloc. It is the UK’s biggest trade deal since Brexit.
“Joining the CPTPP trading bloc places the UK at the center of a vibrant and growing peaceful economic group,” Rishi Sunak said in a statement, adding that the deal demonstrated “the real economic benefits of post-Brexit freedoms. “.
Britain attempted to forge global trade ties after leaving the European Union in 2020. The country is particularly keen to deepen ties in the Indo-Pacific region, after its foreign policy framework made China a major challenge.
Other members of the CPTPP are Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. England is the first new member to join this group. Membership will complement the bilateral Free Trade Agreements (FTAs) the UK has with most member countries.
The Pacific is growing twice as fast as Europe
Britain says the deal will cut tariffs on cars, alcohol and dairy and is expected to boost the economy by £1.8billion a year in the long term – a figure that could rise if more countries adhere to the pact.
“The Pacific Rim is expected to grow twice as fast as Europe,” said Sally Jones of economic consultancy EY. “The CPTPP makes it easier, and the CPTPP will only get bigger as more and more countries want to join.”
Post-Brexit, the UK struck new trade deals with Australia and New Zealand and concluded an FTA with Japan in 2020. The UK is also in talks with Canada and Mexico over of a new FTA.
Future expansion
Japanese Economy Minister Shigeyuki Goto said Britain’s joining the pact was “absolutely important” to further promote free trade, open and competitive markets and economic integration beyond of the Pacific. Japan led negotiations on Britain joining the pact.
On other economies that have pledged to join, such as China and Taiwan, Goto said Japan needs to take a hard look at whether it is “fully prepared to live up to the high standards” of the trade pact.
Taiwan’s chief trade negotiator, John Deng, told Reuters that Taipei would “continue its efforts to gain the support of CPTPP countries” to join as well.
In Beijing, Chinese Foreign Ministry spokesman Mao Ning reiterated Beijing’s opposition to Taiwan joining “any formal agreement or organization”. He said, “If China were to join the CTTPP, it would be a good thing.”
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