United Kingdom to apply to join trans-Pacific free trade bloc

United Kingdom to apply to join trans-Pacific free trade bloc

The UK will soon apply to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trans-Pacific trading bloc of 11 nations, with talks scheduled to begin later this year, the government said.

The free trade arrangement, properly know as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership was formalised in 2018.

In all, the area covers a market of around 500m people, producing more than 13 per cent of the world's income.

The British government had submitted a request for the participating states, writing to the Secretary of State responsible for worldwide trade Liz Truss on Twitter on Monday. In 2017, however, Donald Trump decided that the United States would not continue to participate.

The main goal of the deal is to cut trade tariffs - a form of tax, like a border tax - between member countries.

'Where do we want us to be in 2050 when digital trade is much more important, where British products like financial services and robotics will be in huge demand across the world so what I am doing is laying that groundwork for our future economic opportunities'.

If the United Kingdom were accepted into the CPTPP, it would become the first non-founding member and the second largest economy under the treaty - after Japan.

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The trade agreement was negotiated for twelve years by twelve countries around the Pacific with the aim of countering China.

The CPTPP was launched in 2019 to remove trade barriers between its eleven countries, which represent almost 500 million consumers in the Asia-Pacific region. So countries are not required to have identical regulations and standards.

In practice, however, the short-terms gains for households and business would be limited. The trading bloc was launched in 2019 to remove trade barriers among the 11 nations.

This deal would however deepen some of those ties - and allow United Kingdom manufacturers who source components from multiple nations in the bloc some benefits under "rules of origins" allowances.

The Biden administration, which has been cautious about rejoining, is expected to prioritize the pandemic response and other domestic issues.

Britain has argued that the principle benefit of leaving the European Union is the freedom to strike trade deals around the world, and is moving quickly to try and find a consensus on the need to revitalise global trade after a period of increased nationalism. Information on submitting an application to join the CPTPP was announced on the eve of the first anniversary of the UK's official withdrawal from the European Union, on Sunday. As a result of the trade agreement, for example, the government claims that export tariffs for whiskey and cars can be reduced quickly.

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