The UK has recently inked a deal to become part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact involving 11 countries in Asia and the Pacific, including Japan and Australia, BBC reports.
This agreement grants the UK access to a new market of 500mn people and takes the total value of the pact to $1.3 trillion. While the immediate benefits for the UK are expected to be minimal, as the country already had existing deals with most of the member nations through its EU membership, long-term gains could be significant.
The CPTPP provides greater market access, promising to eliminate or reduce import charges for 95% of goods. It also facilitates cooperation on regulations and offers favorable treatment to investors from member countries. However, concerns have been raised regarding issues such as environmental standards and the potential for multinational companies to challenge British policies.
The UK's membership in the CPTPP will need to be scrutinized and ratified by all members, a process that could take around a year. The partnership's potential for growth and the possibility of additional countries joining, including China and Taiwan, present both opportunities and challenges for the UK.
The US, which currently imports twice as much from the UK as all CPTPP countries combined, has yet to indicate interest in joining the trade pact. Despite the symbolic significance of UK membership, the true rewards may lie in the future.
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