LONDON, England: Britain is set to begin negotiations to join the Trans-Pacific Free Trade Pact that would allow its companies to access distant but rapidly growing markets beyond Europe.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is made up of Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile and Malaysia.
“This part of the world is where Britain’s greatest opportunities lie. We left the EU on the promise of deepening our ties with former allies and fast-growing consumer markets in the world. beyond Europe, “Trade Minister Liz Truss said as quoted by Reuters.
“This is a glittering post-Brexit price that I want us to grab,” she added.
While joining the deal, which aims to cut tariffs on goods traded between members by 95%, would only add $ 2.5 billion to the UK economy in the long run, it would open up market access for its legal, financial and professional services sectors.
British leaders see the deal as a way to increase their influence in a region where China’s economic weight has grown.
The deal would also allow Britain to complement current or potential trade deals with larger members and become an exporter of high-end consumer goods and professional services.
According to the government, exports of cars and whiskey would benefit the most from joining the trade pact.
But real gains would come if Thailand, South Korea and the United States also joined the bloc. So far, US President Joe Biden has not disclosed his intention to join the partnership.
To become a member, Britain would have to prove whether and how it can meet the group’s standards for tariff removal and liberalization of trade regulations.
“The CPTPP deal contains strict rules against unfair business practices, such as favoring state-owned enterprises, protectionism, discrimination against foreign investors and forcing companies to provide private information,” the UK’s Department of Justice said. trade in a press release.
“The UK’s membership will strengthen the international consensus against such unfair practices,” he added.
Unlike the EU bloc, the CPTPP does not seek to impose laws on members, to create a single market or customs union, or to push for greater political integration.