The British government announced this Sunday the signing in New Zealand of its adhesion to the Trans-Pacific Free Trade Agreement (CPTPP), its most important trade agreement since Brexit but put into perspective by economists.
The United Kingdom is the first country in Europe to join the CPTPP, which will thus have 12 countries for a GDP (Gross Domestic Product) of 12,000 million pounds sterling (14,000 million euros), according to a press release from the British Ministry of Commerce .
The bloc brings together 500 million inhabitants and 15% of world GDP with the United Kingdom. Among the ten member countries are the United States, Australia, New Zealand, Mexico and Japan.
Once the accession is signed, the British Government must ratify it, which will mean a parliamentary stage, while the other adherent countries will follow their own legislative process, according to the press release.
Quoted in this press release, UK Trade Minister Kemi Badenoch highlighted the “billions of pounds of additional trade” for UK companies.
“We are not isolated”
In the chain sky news On Sunday, he said London’s membership in the CPTPP showed that “we are not isolated”, “the UK is looking outwards”. “We are based in the fastest growing region in the world,” she said.
When announcing the agreement to adhere to the CPTPP at the end of March, the British Government had highlighted that the contribution to the British economy would reach 1,800 million pounds sterling (2,450 million euros). In a document published in June 2021, the executive estimated the consequences at 0.08% of its GDP.
Since its effective exit from the European Union (EU) and the European Single Market on January 1, 2021, the UK has been seeking to forge comprehensive trade agreements to boost its international trade.
In particular, London has entered into trade agreements with the EU and other European states, but also with countries further afield such as Australia, New Zealand and Singapore. Talks are being held with India or Canada.
An agreement with the United States is unlikely
On the other hand, the long-awaited agreement with the United States is long overdue, and Kemi Badenoch acknowledges that the chances of achieving it are “very low.”
“The United States does not conclude any free trade agreement with any country,” but “everything depends on the administration” of the United States, the minister continued on sky news“different presidents have different priorities.”
While Brexit supporters say it allows London to independently conclude free trade deals, opponents say Britain will have a hard time compensating for the damage resulting from leaving the European Union.
In April, the budget forecasting body OBR (Office for Budget Responsibility) estimated that the trade deal with the EU would reduce long-term productivity by 4% compared to when the UK was part of the EU.
Signed in particular by New Zealand, Australia, Canada and Japan, the CPTPP is the most important free trade pact in the region. China applied in 2021, but several countries view this request frowned upon.
Former US President Donald Trump announced at the beginning of 2017 the withdrawal of his country from this agreement, to which his country had initially adhered, even before its entry into force -which has been taking place in stages since December 2018-.
Source: BFM TV
