The U.K. launched discussions Tuesday to join trade partnership in and around the Pacific Ocean, as it investigates new opportunities globally following its takeoff from the European Union.
The British government said negotiating teams will be working throughout the coming months to join the 11-country Comprehensive and Progressive Agreement for Trans-pacific Partnership, which is home to over half a billion people.
It professes that joining the free trade area would extend ties with fast developing economies across Asia-Pacific and the Americas, including Mexico, Malaysia and Vietnam. It singled out digital, services and finance as areas that will benefit from an economic alliance, which it said should mean tariff free trade for 99.9% of exports.
“Participation in the CPTTP trade partnership would open up unmatched opportunities for British businesses and customers in the fast developing Indo-Pacific,” PM Boris Johnson said. “It’s an energizing chance to expand on this present country’s entrepreneurial spirit and free-trading history to bring economic benefits across the entire spectrum of the U.K.”
The CPTTP is a lot looser course of action than the European Union, which the U.K. officially left last year, as it does exclude any political integration. After the completion of a transition period that was proposed to smooth the U.K’s. takeoff, the nation is now ready to determine its own trade deals. Last week, the British government negotiated the broad outlines of an economic agreement with Australia that will see levies on a range of products removed over the coming years.
The US, the world’s greatest economy, isn’t part of the partnership; former President Donald Trump pulled out the country from its archetype, the Trans-pacific Partnership. His successor, Joe Biden, has recently demonstrated that he might want to rejoin the group however has not set out any plans since resuming in January.
China, the world’s No. 2 economy, likewise doesn’t have a place.
The British government said CPTPP nations represented around 110 billion pounds ($153 billion) worth of U.K. trade 2019. Despite the amount being substantial, it is six times less than the business U.K. conducts with the EU.
