SUMMARY
- Britain's Business and Trade Secretary, Kemi Badenoch, signs the U.K.'s biggest post-Brexit trade agreement, confirming the accession to the Indo-Pacific CPTPP bloc.
- This deal paves the way for almost 99% of U.K. goods exported to CPTPP countries to be tariff-free, connecting Britain to a region with a £12 trillion ($15.7 trillion) GDP.
- Despite limited domestic GDP growth predictions, the government champions this move as a significant stride in boosting the U.K.'s economy and employment, providing access to a market of over 500 million people.
In a landmark move for the United Kingdom post-Brexit, Kemi Badenoch, the Business and Trade Secretary, has solemnly inked a deal to join the vast Indo-Pacific CPTPP bloc, marking the country's most substantial trade agreement since its split from the European Union.
The deal, which was ceremoniously signed on Sunday in New Zealand, now heads for rigorous examination in the UK Parliament, and other CPTPP nations will undertake their legislative procedures. This sweeping agreement promises that almost all U.K. goods presently exported to CPTPP countries would soon enjoy a zero-tariff benefit, an announcement from the British government confirmed.
The prestigious Comprehensive and Progressive Agreement for Trans-Pacific Partnership, with 11 nations under its umbrella including Canada, Mexico, Japan, Australia, Vietnam, Singapore, and Malaysia, will now welcome the U.K. as its first European ally. The British government anticipates this to kickstart trading activities with a region boasting an impressive GDP of £12 trillion ($15.7 trillion).
Despite the enthusiasm surrounding this agreement, the exact impact it will have on the U.K.'s economic growth trajectory remains speculative. Government assessments hint that the long-term boost to domestic GDP could be a meagre 0.08%, scarcely compensating for the losses incurred in European trade due to Brexit.
Nevertheless, Kemi Badenoch iterated Britain's commitment to utilizing its status as an autonomous trading nation to form part of this dynamic and forward-thinking trade bloc. She expressed optimism about the opportunities and growth potential that the agreement could yield, citing that it would also bolster the many jobs already supported by CPTPP-owned businesses within the U.K.
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