Britain is all set to agree to the multiple trade agreements with New Zealand, Australia, and Japan.
UK is on the lookout to become a member of the free-trade area of the Pacific Nations as confirmed by the International Trade Secretary- Lizz Truss. For Britain’s formal accession, she met with 11 members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership-CPTPP, on Wednesday, September 9, 2020, for the first time.
Truss also said “Joining CPTPP would send a powerful signal to the rest of the world that Britain is prepared to work with countries who champion free and fair trade.Membership would bring new opportunities for our go-getting businesses, more choice for our consumers, and provide us with greater economic security.” She added “Strategically, it would help us forge closer ties with the wider Pacific region and put us in a stronger position to reshape global trading rules alongside countries who share our values.”
Members of the CPTPP also comprises of Vietnam, Singapore, Chile, Brunei, Peru, Malaysia, and Mexico. The trade once finalized is expected to contribute to the global Gross Domestic Product (GDP) by 14%.
The trade between CPTPP countries and the UK has increased by 65 on an average every year. In 2019, it was worth £ 112 billion.
A government press release also said that the UK will enter a formal accession negotiation with all the members of the state if it decides to apply.
The CPTPP membership also allows the trade links expansion with some of the key partners in America. Truss also made the statement – “Joining CPTPP would send a powerful signal to the rest of the world that Britain is prepared to work with countries who champion free and fair trade.”
95% of goods traded between the members of CPTPP removes tariff by the free trade area. This can look good for British exporters as it provides them with new economic opportunities and cost reduction for business.