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Sunak hails UK joining Indo-Pacific trade bloc

31 Mar 2023 4 minute read
Prime Minister Rishi Sunak. Photo Jordan Pettitt PA Images

Rishi Sunak has hailed the UK’s acceptance as a member of a major Indo-Pacific trade bloc, saying it puts Britain in a “prime position” in the global economy.

The UK accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was formally confirmed in a telephone call between Trade Secretary Kemi Badenoch and counterparts from the group.

It represents the biggest trade deal since leaving the EU, cutting tariffs for UK exporters to a group of nations which – with Britain’s accession – will have a total gross domestic product (GDP) of £11 trillion, accounting for 15% of global GDP, according to UK officials.

The Prime Minister said it demonstrated how the UK is able to take advantage of its “post-Brexit freedoms” to strike agreements that were impossible when it was in the EU which will drive economic growth across the country.

However critics have said the impact will be limited, with official estimates suggesting it will add just £1.8 billion a year to the economy after 10 years, representing less than 1% of UK GDP.

Safeguards

Labour said it was essential to ensure that UK safeguards on consumer safety, food safety, data protection and environmental protections were not compromised as a result of the agreement.

The UK is the first new member, and first European nation, to join the bloc – comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – since its formation in 2018.

It follows nearly two years of negotiations, culminating in intensive talks in Vietnam earlier this month, when representatives of all 11 existing members agreed to the UK joining.

While Britain already has trade agreements with most of the CPTPP members, apart from Malaysia, officials said it would deepen existing arrangements, with 99% of UK goods exported to the bloc now eligible for zero tariffs.

Key UK exports to the region, including cheese, cars, chocolate, machinery, gin and whisky, will be among those to benefit, while officials said the services industry would also enjoy reduced red tape and increased market access.

At the same time, they said vital UK sectors, including agriculture and the NHS, will be protected, while existing animal welfare and food safety standards will be maintained.

It represents a continuation of the post-Brexit policy “tilt” towards the Indo-Pacific region first initiated by Boris Johnson.

Unparalleled

Mr Sunak said it would put the UK at the centre of a “dynamic” group of Pacific economies, giving British businesses “unparalleled access to markets from Europe to the south Pacific”.

“We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms,” he said.

“As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation.”

The CBI welcomed the agreement as a “milestone” for British industry, reinforcing the UK’s commitment “to building partnerships in an increasingly fragmented world”.

Interim director-general Matthew Fell said: “CPTPP countries and business need to work together to future proof the rules-based trading system and stimulate growth with a focus on digital, services and resilient supply chains.”

Labour said that while the agreement represented “encouraging” progress, it needed to see the details.

Shadow trade secretary Nick Thomas-Symonds said: “The Conservative Government’s track record in striking good trade deals is desperately poor.

“Other countries joining CPTPP arrangements have secured important safeguards and put in place support for their producers: it is vital that ministers set out if they plan to do the same.”

Liberal Democrat trade spokeswoman Sarah Green said: “This Conservative Government is responsible for some shocking trade deals that fail to add economic benefit to the UK.

“The Conservatives have trashed the British economy with GDP stagnant and this announcement will not even repair a fraction of their damage.”


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Mawkernewek
Mawkernewek
10 months ago

There’ll be a great economic opportunity producing the new world maps showing the UK in its new location in the middle of the Pacific. Where should they put it, just east of Japan with some of the Scottish islands brushing up against Kamchatka and the Aleutian Islands, or off the west coast of Canada, or maybe we should go for the southern hemisphere, somewhere between New Zealand and Chile?

Llyn
Llyn
10 months ago

Brexit has seen reduced incomes, life expectancy, productivity and higher food prices, higher fuel prices, increased migration, no economic growth and I”m supposed to be excited about a trade deal with Brunei!

Y Cymro
Y Cymro
10 months ago

We’ve gone from trading within a 500 million European marketplace to an indo-pacific whelk stall. And don’t forget, Wales will be competing with New Zealand & Australian super-ranches in their own backyard to sell our meat produce is a pipedream to think that this agreement will be beneficial to the Welsh economy.

Last edited 10 months ago by Y Cymro
Lib Dem YesCymru Infiltrator
Lib Dem YesCymru Infiltrator
10 months ago

Vietnam is Communist.
Brunei kills people for being gay.
Malaysia canes gays.
Singapore is an Orwellian surveillance nightmare.
We should not do business with them.

Gareth
Gareth
10 months ago

This is just tragic on so many levels. If any part of this deal is anywhere near the deal they did with NZ and OZ, then God help our agriculture industry, and only this week the UK Gov have been spouting gibberish about reducing global pollution. Just said to Mrs Gareth, I have a plan, from now on why shop local when we can fly to Ireland and use Dublin’s Tesco.

Last edited 10 months ago by Gareth
Mab Meirion
Mab Meirion
10 months ago

Think of the air-miles and miles per gallon per quiid per member of the No 10 gang of bag-carriers and influencers etc…you need the big trough for these homo-superiors…

Steve Duggan
Steve Duggan
10 months ago

Sadly, this is what the UK has become because we have ideologists ruling the roost. Hailing a deal with countries 10,000 miles away, which will benefit the country very little, while our trade with one of the world’s largest trading blocks, on our doorstep, just 23miles away takes a hit. This stupidity beggars belief.

Last edited 10 months ago by Steve Duggan

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