Britain’s membership in the Indo-Pacific Trade Organization Britain’s membership in the Indo-Pacific Trade Organization (CPTPP) (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has officially come into effect.
Key Points
- Membership effective: The United Kingdom officially became the 12th member of the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).
- Treaty signed: The former UK government signed the agreement last year, after which most member countries ratified it.
- Economic benefits: The agreement could benefit Britain’s weak economy by up to $2.5 billion (about €2.4 billion) annually.
Trade expansion after Brexit
- Britain is looking for new trade agreements after separating from the European Union.
- Currently, more than 40% of the UK’s exports and more than 50% of imports are with EU member countries.
Importance of CPTPP for UK
- Reduction in tariffs on UK exports: Joining the CPTPP will reduce tariffs on UK exports to Asia-Pacific countries. This will boost UK trade.
Economic benefits
- According to a government analysis, the agreement is expected to increase UK exports by £1.7 billion (around €1.9 billion, $2.23 billion).
- Along with this, UK imports will increase by £1.6 billion and result in an increase of £1.8 billion in UK GDP.
Economic impact of CPTPP
- When the UK joins the CPTPP, the total GDP of this trading group will be £12 trillion and it will represent 15% of global trade.
- Member countries of this group generate 13% of the world’s income.
- Desire to deepen trade ties: The UK is keen to deepen its trade ties with Asian and Pacific countries after Brexit (2020).
Increase in global geopolitical and economic influence
- Joining the CPTPP is seen as an opportunity for the UK to join other trading groups with fast-growing economies.
- This will strengthen the UK’s global geopolitical and economic position.