UK reaches its biggest trade deal since Brexit, joining trans-Pacific partnership
The UK has agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a 11-nation trading bloc.
The UK has signed an agreement to become a member of the major trans-Pacific Partnership, which it calls its largest trade deal since Brexit.
The country is the first European nation to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership since its inception in 2018.
British Prime Minister Rishi sunak announced the decision early on Friday. He hailed it as an historic move which could boost economic growth by PS1.8 billion (US$2.2 billion) over the long term.
Sunak's Office said that the bloc will have more than 500 million residents and 15% of global GDP when the UK joins.
CPTPP is an 11-member free trade agreement. It includes Australia, Brunei (Burma), Canada, Chile, Japan Malaysia, Mexico Peru, New Zealand Singapore and Vietnam. The CPTPP replaced the Trans-Pacific Partnership, which the United States had withdrawn from under the former President Donald Trump.
After almost two years of talks, the UK has finally agreed to join.
In addition, as a member of the EU, more than 99 percent of UK exports will be eligible for free trade. This includes the major exports such as cars, cheese, chocolate, machinery and gin & whisky.
Sunak's Office said that the United Kingdom had exported goods worth $75 billion to CPTPP nations in the year up until September 2022.
Last year, dairy farmers sent PS23.9 millions ($29.6million) in products like cheese and butter, to Canada, Chile and Mexico. They will "benefit from reduced tariffs," the report added.
The agreement also aims at reducing red tape for British companies, who will no longer have to establish local offices in the member countries of the pact or be residents to provide services there.
According to Sunak's Office, services accounted for a large portion -- 43% -- in the total UK trade with CPTPP member countries last year.
The prime minister said that "we are at heart an open, free-trading country," in a statement. He was trying to portray the deal as a "economic benefit of our post Brexit freedoms."
Sunak said, "As a member of CPTPP the UK now has a unique position to take advantage of opportunities in the global market for creating new jobs, growth, and innovation."
In a government statement, several businesses have expressed their support for this deal. These include the global bank Standard Chartered as well as spirits producer Pernod Ricard.
Anishka Jelicich is Pernod Ricard UK's director of public affairs. She said that joining the pact was a "big opportunity" for Pernod Ricard UK.
Five of our 20 largest export markets are CPTPP member countries. We expect that tariff reductions and easier access to some the fastest-growing economies in the world will increase exports, secure jobs and investment for the UK. Sales in some markets are expected to double.
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