The United Kingdom has made history by becoming the first European nation to join the Indo-Pacific Trade Alliance, marking a significant shift in its economic strategy.
UK Joins Indo-Pacific Trade Bloc as First European Member
The United Kingdom has become the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a significant move that marks its entry into the Indo-Pacific trade bloc. This development comes after the previous British government signed the accession treaty in July 2023, with most members ratifying the UK’s entry since then.
Boost to Britain’s Struggling Economy
The UK’s membership of the CPTPP is expected to have a positive impact on its struggling economy. Officials hope that this move could boost Britain’s economy by as much as $2.5 billion (roughly €2.4 billion) per year. The country is trying to strike new trade deals abroad in the aftermath of leaving the European Union following its 2016 referendum on Brexit.
What is the CPTPP?
The CPTPP was formed after the planned Trans-Pacific Partnership (TPP) bloc was salvaged from the ashes, with Washington withdrawing soon after Donald Trump’s election in 2016. The pact retains most of the provisions of the original deal and lowers trade barriers between member states on various goods. However, it offers far less comprehensive free trade than the uninhibited movement of goods and services with EU member states.
CPTPP: A Counterweight to China
The CPTPP is seen as an economic counterweight to China in the Pacific region, although China is also one of several applicants currently seeking membership. Combined, its members account for roughly 15% of global GDP and a population of around half a billion.
UK’s Trade Deals Since Brexit
Britain has secured a number of trade deals since leaving the EU’s single market at the start of 2021, including with Australia, New Zealand, and Singapore. Critics contend that Brexit’s economic impact dwarfs these deals. Labour’s Business Secretary Jonathan Reynolds said the country was “uniquely placed to take advantage of exciting new markets, while strengthening existing relationships.
