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Yesterday, UK officials have started negotiations to join a trans-Pacific trade deal that it sees as crucial to its post-Brexit pivot away from Europe, moving towards more distant but faster-growing economies.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) removes 95% of tariffs between its members: Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile and Malaysia.
Regarding this, the UK hopes o carve out a niche for itself in world trade as an exporter of premium consumer goods and professional services. Accession to the pact would supplement the trade deals Whitehall is seeking, or has already agreed, with larger members.
Reuters.com quoted trade minister Liz Truss as saying: “This part of the world is where Britain’s greatest opportunities lie. We left the EU with the promise of deepening links with old allies and fast-growing consumer markets beyond Europe. It is a glittering post-Brexit prize that I want us to seize.”
Joining the CPTPP in its current format could add around 1.8 billion pounds ($2.5 billion) to the economy over the long-term – or less than 0.1% of pre-pandemic gross domestic product, according to British government modelling published yesterday.