The United Kingdom submitted a formal application Monday 1 February to join the Trans-Pacific Partnership Agreement, which has been officially called the Trans-Pacific Comprehensive and Progressive Partnership (CPTPP) agreement. It includes the countries bordering the Pacific Ocean: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

British Pound stock.adobe.com/Maury Mauser

The United Kingdom formally submitted an application Monday 1 February to join the Trans-Pacific Partnership Agreement, officially called the Trans-Pacific Comprehensive and Progressive Partnership Agreement (CPTPP). Pacific countries include: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

CPTPP was derived from the Trans-Pacific Partnership Agreement (TPP), which never went into effect due to the U.S. withdrawal.

The third free trade zone in the world

The GDP of the 11 economies of the CPTPP countries combined is $ 13.5 trillion, which represents 13.5% of the global output, making it the third largest free trade area in the world after the USA, Canada, Mexico and European Union agreement.

The United Kingdom will be the first country outside the Pacific to belong to CPTPP

British Minister of State for International Trade Elizabeth Truss, Videoconferencing with counterparts in Japan and New Zealand.

Negotiations since spring

Japan and other members of the trade pact support Britain’s efforts to become the first country outside the Pacific to join the CPTPP. Membership talks are due to start this spring.

Unlike EU membership, accession does not require the UK to relinquish control of laws, borders and money

A working group is expected to be formed to continue accession talks. Japan holds the presidency this year, and New Zealand is responsible for accepting applications to join. Accession to the convention requires the consent of all the states to which it belongs.

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The UK’s accession to the Trans-Pacific Partnership will reduce tariffs for British exporters, including food and cars, while creating new opportunities for modern technology industries.

Unlike EU membership, accession does not require the UK to relinquish control of laws, borders and money.

Balancing China

The UK’s trade with CPTPP countries in 2019 was £ 111 billion and grew 8% annually as of 2016.

Japan hopes to return to the US trade agreement. Its creator and staunch backer was the President of the United States Barack ObamaWho were confident that the Trans-Pacific Partnership would counterbalance China’s growing influence in the Asia-Pacific region. Obama’s successor Donald Trump He withdrew from the agreement shortly after taking office in 2017.

However, a quick return for the United States to the agreement is unlikely, as President Joe Biden, who succeeded Trump, believes his administration should focus first on the domestic economy and tackling the coronavirus.

The Chinese President expressed his desire to join the treaty Xi Jinping In November, Asia Pacific Economic Cooperation Forum. South Korea, Taiwan and Thailand are also interested in the membership.

However, China’s participation in the CPTPP is unlikely, due to the free trade standards in force in the agreement, such as prohibiting preferential treatment of state-owned enterprises and stronger protection of intellectual property rights.