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The UK has signed an agreement to join the Comprehensive and Progressive Alliance for the Trans-Pacific Partnership

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The deal will be a big boost for UK businesses and will deliver billions of pounds in increased trade, as well as huge opportunities and unparalleled access to a market of over five hundred million people, said British Business and Trade Minister Kemi Badoch. The UK has formally signed an agreement to join the Comprehensive and Progressive Alliance for the Trans-Pacific Partnership (CPTPP), a trade bloc of 11 countries bordering the Pacific.

After ratification of the agreement, which should take place by the middle of next year, Great Britain will become the first European country in the CPTPP and the first newly admitted member since the creation of the bloc in 2018. It consists of 11 countries in the Pacific region: AustraliaBrunei, Chilejapan, Canada,Malaysia,Mexico, New Zealand, Peru, Singapore and Vietnam, inhabited by over 500 million people. Together with the UK, their combined GDP is £12 trillion, which is 15% of GDP. world economy.

Increased trade is expected to provide billions of pounds

“I’m delighted to be here in New Zealand to sign a deal that will give a big boost to UK businesses and deliver billions of pounds in increased trade, as well as huge opportunities and unparalleled access to a market of over five hundred million people.” We are using our status as an independent trading nation to join an exciting, growing, forward-looking trading bloc that will help develop the UK economy, building on the hundreds of thousands of jobs already being created across the country by CPTPP companies. Kemi Badenoch. On the occasion of the signing of the agreement, the British government published data showing that companies based in the CPTPP countries employed one in 100 employees in Great Britain in 2019, which translates into over 400,000 jobs. jobs across the country. The signing of the accession agreement is a formal confirmation of the agreement reached in March after two years of negotiations.

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Critics: Free Trade Area will not offset economic losses from Brexit

The British government argues that this is the most important trade deal concluded since leaving the European Union three years ago, and membership of the CPTPP will give British companies access to the world’s largest current and future economies. However, critics point out that the gains from joining this free trade area will not offset the economic losses of leaving the EU. Thanks to joining the CPTPP, over 99% of of British goods exported to 11 member states will be free of tariffs and trade barriers. But as the UK already had trade deals with all members of the bloc except Brunei and Malaysia, its entry into the free trade area will not translate into significant economic gains or offset the losses associated with leaving the EU. When formal negotiations began, the British government calculated that as a result of membership, GDP would increase by 1.8 billion pounds over 15 years, or only 0.08 per cent. Meanwhile, according to estimates, British GDP will be 4% higher in 15 years. lower than it would have been had the UK stayed in the EU.

Read also: Three years since the UK left the European Union. How do Brits view Brexit?

Main photo source: Shutterstock



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