The UK Applies To Join Asia-Pacific Free Trade Agreement

On Monday, the UK will apply to join one of the world's largest free-trade areas that include 11 Asia and Pacific nations...

Remember the fear mongering (*cough*)...

The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) covers a market of approximately 500 million people with the EU covering around 446 million, in contrast.

Oh, and the move was announced precisely a year after the UK left the EU...

International trade secretary, Liz Truss will speak to ministers in Japan and New Zealand on Monday morning (1 February 2021) to request to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), with formal negotiations set to start this year.

"Joining the CPTPP would deepen the UK's access to fast-growing markets and major economies, including Mexico, Malaysia and Vietnam, for the benefit of UK business," the government said in its statement.

The partnership is worth £9 trillion and will cut tariffs for UK industries, including food and drink, and cars.

In 2019, UK trade with the group was worth £111 billion, growing 8% per year since 2016.

It's a great, if not cheekily timed move...

However, the impact may be gradual, to begin with, as the UK already has rollover trade deals in place with nations in the partnership.

UK exports to those nations is also a lot less compared to exports to the EU.

"One year after our departure from the EU we are forging new partnerships that will bring enormous economic benefits for the people of Britain," said Prime Minister Boris Johnson.  

"Applying to be the first new country to join the CPTPP demonstrates our ambition to do business on the best terms with our friends and partners all over the world and be an enthusiastic champion of global free trade," Bojo said.