CPTPP: UK joins biggest trade deal

UK joins biggest trade deal CPTPP


  • The UK formally signed a treaty to join a major Indo-Pacific bloc CPTPP what it said was the biggest trade deal since the country left the European Union at the beginning of 2020.

What is CPTPP?

  • The CPTPP is a landmark pact agreed upon in 2018 that cuts trade barriers among 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
  • The pact requires countries to eliminate or significantly reduce tariffs and make strong commitments to opening services and investment markets.
  • It also has rules addressing competition, intellectual property rights and protections for foreign companies.
  • CPTPP is seen as a bulwark against China’s dominance in the region, although Beijing has applied to join, along with Taiwan, Ukraine, Costa Rica, Uruguay and Ecuador.
Courtesy: ResearchGate

Why is the CPTTP so important to the UK?

  • The UK government says CPTTP will cut tariffs for UK exports to Asia Pacific countries and with UK membership, the trading bloc will have a combined GDP of 12 trillion pounds and account for 15% of global trade.
  • Britain is keen to deepen trade ties in the Pacific after Brexit in 2020.
  • London has been pushing a “Global Britain” strategy since it gave up EU membership after nearly 50 years, leaving the bloc’s single market and customs union.
  • Since Brexit, the UK has sought other trade deals with countries and trading blocs around the world that the government says have faster-growing economies than the EU.
  • The UK already has trade deals with 10 of the 11 other CPTPP members and the eventual economic boost is likely to increase GDP by just 0.08% annually.

Source: IE

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