Britain Enters Free Trade Agreement Under CPTTP
The UK has now launched negotiations to enter the band of 11 countries that are going to enjoy joint trade partnerships in and around the Pacific. This is a major step for the United Kingdom post its exit from the European Union.
In a formal statement made by PM Boris Johnson, “Joining the free trade area would deepen ties with fast-growing economies across Asia-Pacific and the Americas, including Mexico, Malaysia, and Vietnam.” The United Kingdom has singled out digital, services, and finance as sectors that stand to gain from a trade deal, which it said should mean tariff-free trade for 99.9% of exports.
India is also going to benefit hugely from United Kingdom’s interest in developing entrepreneurial business acumen in its geography. Johnson has made a public statement confirming that 10 Downing Street is serious about its business expansion, “It’s an exciting opportunity to build on this country’s entrepreneurial spirit and free-trading history to bring economic benefits across the whole of the U.K.”
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) has given UK much more flexibility in comparison to its work with the European Union. Political analysts believe this to be a better arrangement as there are no political ramification or possibilities of integration.
After the conclusion of a transition period that was intended to smooth the U.K.’s departure, the country is now able to negotiate its own trade deals. Last week, the British government negotiated the broad outlines of a trade deal with Australia that will see tariffs on a range of goods eliminated over coming years.
Ironically, the British government isn’t doing as much substantial business as it would have in the previous years. With the EU participation, it did almost six times more business. In 2019, along with the CPTPP countries, its business accounted for around 110 billion pounds ($153 billion) worth of trade only.