Britain said on Friday that it had joined an 11-country trans-Pacific trade pact that includes Japan and Australia to strengthen regional connections and boost global commerce after leaving the EU.
Britain joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the greatest trade pact since Brexit, according to Prime Minister Rishi Sunak.
Sunak said the transaction showed “the genuine economic benefits of our post-Brexit freedoms.”
After leaving the EU in 2020, Britain has focused on commerce with distant but fast-growing economies.
Its foreign policy frames China as an “epoch-defining issue” and deepens Indo-Pacific connections.
CPTPP includes Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Britain joined first.
Joining will augment Britain’s bilateral Free Trade Agreements (FTAs) with most member nations and provide firms with more trading alternatives.
Trade deal effects will be limited. However, Britain estimated that cutting tariffs on vehicles, alcohol, and dairy goods will benefit the economy by 1.8 billion pounds ($2.2 billion) annually, which might climb if different nations join the accord.
“The Pacific Rim is predicted to develop twice as quickly as Europe, so UK firms should think about their regional footprint,” said EY trade policy and strategy partner Sally Jones.
“The CPTPP simplifies that, and as more nations join, it will grow.”
In 2020, Britain signed an FTA with Japan and new trade arrangements with Australia and New Zealand. After rolling over EU trade treaties at the end of 2020, it is negotiating new FTAs with Canada and Mexico.
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