UK agrees CPTPP joining terms
The UK has concluded negotiations with the Comprehensive and Progressive Trans Pacific Partnership (CPTPP). The trading bloc comprises Australia, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.
Membership is seen as a geo-political move as well as relevant to trade, as the UK “pivots” away from Europe to focus on the Indo-Pacific region. China and Tiawan have applied to join - it is unclear how those applications will develop.
The benefit to the UK economy is estimated by the government to build to £1.8 billion a year after ten years, or 0.08% (Financial Times). This has led commentators to suggest that it does little to compensate for the effects of leaving the EU.
The biggest change is likely to be in trade with Malaysia, with which the UK has no existing trade agreement. One effect will be to eliminate tariffs on palm oil, a move that has been criticised by environmental campaigners. There are tensions between the EU and Malaysia and palm oil, with Malaysia threatening in January to stop palm oil exports to the EU over new rules aimed at stopping further deforestation.
The UK has succeeded in negotiating terms for joining that mean current food standards are retained, notably in respect of beef, despite pressure from Canada.
The government said that “our accession will send a powerful signal that the UK is using our post-Brexit freedoms to future proof the economy". Sources are quoted as saying that CPTPP is a trading bloc “without a flag, a court and a parliament”. Ratifications are likely to be completed and the UK to join CPTPP some time next year.
CPTPP was formed in 2018, after the current members decided to press ahead despite the withdrawal of the US from a similar planned trading bloc in 2016.
More information...
Malaysia says it could stop palm oil exports to EU after new curbs – EURACTIV.com
UK and Canada sign agreement to boost green tech supply chains - GOV.UK (www.gov.uk)
