After 21 months of negotiations, London has reached the finish line to join a dynamic commercial playground called CPTPP. Announcing the official signing ceremony, expected to take place this year, Prime Minister Rishi Sunak affirmed, that joining the CPTPP puts the UK at the centre of a group of dynamic and rapidly growing economies in the Pacific region. Welcoming London's participation, Minister in charge of Economic Revitalisation of Japan Shigeyuki Goto stressed, that this event is of great significance, contributing to promoting free trade within and outside the region. Many experts assessed this as a “win-win step” for both the UK and other members.
The Indo-Pacific region is seen as central to the Global Britain strategy. Prime Minister Sunak once stressed that the Indo-Pacific region is expected to contribute more than half of global economic growth by 2050. London wishes to deepen ties with this important area on the world geopolitical map.
The UK soon expressed its intention to join the CPTPP, after this large commercial playground was formed in 2018. The turning point of leaving the European Union (EU), after nearly half a century, further promoted that determination. London applied to join the CPTPP in February 2021 and started negotiations in June of the same year. This move represented Britain's attempt to diversify its economic linkage outside of Europe. According to the Department for Business and Trade, the UK's participation in CPTPP sent a strong message about the country’s efforts, in opening more doors to new markets around the world.
British officials insisted that this is the most important trade agreement signed by London in the post-Brexit era.
For the UK, the CPTPP offers the prospect of boosting economic growth, innovation and job creation. British officials insisted that this is the most important trade agreement signed by London in the post-Brexit era. More than 99% of exported commodities from the country to other CPTPP members, will enjoy a 0% tax rate. The companies operating in the legal, financial and service sectors, have the opportunity to expand their business in the rapidly growing markets in member countries. The British government estimates that joining the CPTPP will bring in about 2.2 billion USD per year, which will increase as the CPTPP continues to be expanded.
In addition to practical economic benefits, participation in the CPTPP is considered a political victory for London. This is an opportunity for Britain to increase its economic presence in the Asia-Pacific rim, continuing its security presence through the AUKUS Agreement signed with the US and Australia. In addition, the completion of CPTPP negotiations, just a few weeks after signing the Windsor framework with the EU, on resolving issues related to Brexit, has helped Prime Minister Sunak's administration score points with voters, with the local May elections approaching.
As one of the world's largest free trade areas, the CPTPP currently has 11 countries, accounting for 12% of the global GDP.
The participation of the UK, Europe's leading economy with a market of 67 million consumers, has shown the attractiveness of a large-scale multilateral trade cooperation framework like the CPTPP. As one of the world's largest free trade areas, the CPTPP currently has 11 countries, accounting for 12% of the global GDP. According to the International Monetary Fund (IMF), Britain's accession will turn the CPTPP into a market of more than 500 million people, with an estimated GDP of more than 13.6 trillion USD, equal to 15% of the world’s GDP.
British Trade Commissioner for Asia-Pacific Natalie Black said, that Britain's accession could help elevate the CPTPP from the Pacific region to a global agreement. The first expansion milestone after 5 years of the formation of the CPTPP, also marks an important step in the Global Britain strategy.
