Illustrative image. Foto: Shutterstock / TK Kurikawa

As the government in London argues, CPTPP membership would make it easier for British companies to access the world’s largest current and future economies, but critics point out that the gains from joining this free trade area will not offset the economic losses from leaving. European Union.

A free trade zone, also known as a foreign trade zone, formerly a free port, is an area where goods can be unloaded, re-shipped, produced, reconfigured and re-exported without interference from customs authorities. Only when goods are transferred to consumers in a country outside the free trade area are they subject to applicable customs duties. Free trade zones are organized around major seaports, international airports and national borders – areas that have many geographical advantages for trade.

CPTPP consists of 11 countries of the Pacific region: Australia, Brunei, Chile, Japan, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, with a population of about 500 million people. Its total GDP is $12.5 trillion, or 13 percent. world economy. If the UK joins them, that percentage will rise to 16%.

CPTPP. These 11 countries account for 13.5 percent of global GDP, or $13.6 trillion, making it one of the largest trade deals ever signed, right after the North American Free Trade Agreement. Source: The Sunday Times

“We left the EU with a promise to deepen our relationships with old allies and fast-growing consumer markets outside Europe, and joining the high-level Trans-Pacific Partnership is an important part of this vision. Organic will help our farmers, creators and innovators sell produce to some of the largest economies of today and tomorrow, but without Giving up control of our rights, our borders or our money This is the glistening post-Brexit prize I want us to take advantage of, British International Trade Secretary Liz Truss said.

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The British government said that thanks to joining the CPTPP, exports to these countries will increase by 65% ​​by 2030. – By 37 billion pounds, and these benefits may increase over time, as the Philippines, South Korea, Thailand and Taiwan are interested in joining the agreement.

But since the UK already has trade agreements with eight of the 11 CPTPP members, its membership in the FTA will not translate into significant economic benefits. According to the calculations of the Department for International Trade itself, as a result of membership, Britain’s gross domestic product will increase by 1.8 billion pounds over 15 years, or by only 0.08 percent. While it is noted that if South Korea and Thailand also join the CPTPP, this increase will be 5.5 billion pounds, besides, there is a consistent model that does not take into account the potential growth of other variables, but in any case this is less than the estimated benefits from leaving the EU. According to estimates, Britain’s GDP will be 4 per cent in 15 years. Less than it would have been if the UK had stayed in the EU. PAP / Sunday Times / mib

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