The British government is all set to join a free trade area with 11 Asian and Pacific nations. The Boris Johnson-led government said the group of “fast-growing nations” will boost UK exports. The group in question is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) covers a market of over 500 million people. Members of the group include Australia, Canada, Japan and New Zealand. The group was established in 2018, with founder members including Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.
International Trade Secretary Liz Truss was quoted by media as saying, “In future it's going to be Asia-Pacific countries in particular where the big markets are, where growing middle-class markets are, for British products. Of course British businesses will have to reach out and take these opportunities, but what I'm doing is I'm creating the opportunities, the low tariffs, removing those barriers so they can go out and do that.”
She added that joining the bloc would reduce tariffs on UK exports such as whiskey and cars. Impact of the membership may be underwhelming as the UK already has free trade deals in place with a total of seven out of the 11 CPTPP members. In 2019, CPTPP nations in total accounted for 8.4 per cent of UK exports, roughly the same as Germany alone. The update comes exactly a year after the UK left the EU. The free trade block aims to reduce trade tariffs, a form of border tax between member countries. The UK is the first non-founding country to apply to join the CPTPP, and would go on to be its second biggest economy after Japan.
Membership includes a promise to eliminate or reduce 95 per cent of import charges, however, some of the charges are maintained to protect certain home-made products. Countries in return, must cooperate on regulations, such as food standards. The British government said membership will help offer the potential for faster and cheaper visas for business people.
