Context:
The United Kingdom recently decided to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
About
- 11 nations make up the Indo-Pacific Free Trade Area under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
- Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam are among its partners.
Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was made in 2018, Britain will be the first new partner and the first European country to join. - Once the UK enters, the 500 million-person bloc will account for 15% of the world’s GDP.
Relevance to the UK
- The UK views this as a boost to its geopolitical relations and commercial growth.
- The UK anticipates an annual increase of £1.8 billion ($2.23 billion) in the long run.
- The UK also thinks that joining will give it a say in establishing regional trade laws in the ensuing decades. It might imply that the UK and other members are obstructing China’s potential membership in the club.
- With better access to Mexico, Canada, and Japan for dairy exports and a boost to Britain’s automotive and alcohol industries, especially through the export of spirits to Malaysia, membership will eventually guarantee zero-tariff trade in a number of import and export sectors.