The UK government’s announcement of its decision to join the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been welcomed as a step in the right direction for UK and global firms alike.
Britain has joined the 11-member strong Asia-Pacific trade bloc that includes Japan and Australia after nearly two years of negotiations.
“I think the deal is a positive step towards enhancing trade and investment flows into and out of the UK,” says Paul Beare, whose firm specialises in helping companies from across the world get a foothold in the UK and grow into flourishing businesses.
The fact that it encompasses such fast growing economies like Australia and New Zealand is a real benefit to both sides. It means the UK will be more likely to attract foreign direct investment in the form of overseas businesses deciding to expand in to the market, and that has to be a good thing.
The agreement, secured after 21 months of talks, will allow exporters to “seize opportunities for new jobs, growth and innovation”, the UK government said.
The prime minister, Rishi Sunak, said: “We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms.”
Spanning Canada, Mexico, Japan, Australia, Vietnam and Malaysia, the CPTPP is expected to be ratified by the UK parliament and those of the other 11 member states later this year.
The government said the deal, which will cut tariffs on exports of food, drink and cars, would generate £1.8bn of extra income once it had been up and running for 10 years, which is about 0.08% of the UK’s annual gross national product (GDP).
“It’s an important step for businesses across the group as it reduces trade barriers and makes investing and starting up in new countries that bit easier,” says Paul. “The companies that we help set up and thrive in the UK will certainly benefit from a greater ease of trade. It’s also true that by tying the UK into a new trading bloc in the Pacific the opportunities for start ups in all countries should increase.”
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- Written by: Paul Beare
- Posted on: April 12, 2023
- Tags: feature, trade agreements