The decision by the 11 members of the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP) on Wednesday to allow Britain to officially begin the process of joining the pact is a “win-win” for Britain , membership in the CPTPP and the agreement itself. . If its membership goes through, Britain would become the group’s second-largest economy after Japan, and its entry would increase the bloc’s combined GDP by about 25% in US dollars. As a member, Britain would have easier access to a market which is roughly the same size as that of the European Union, of which it was once a part. However, the size of its trade with CPTPP members is barely a sixth of what it is with the EU – suggesting that there is great potential for Britain to expand its trade with the EU. group.
But this will only happen gradually. Britain has already concluded free trade agreements with seven CPTPP members and is negotiating agreements with two more, meaning that the additional economic gains from joining the partnership will be limited at first. However, Britain would be able to use inputs from all CPTPP member economies to create new supply chains. For example, as UK Secretary of State for International Trade Liz Truss explained, its car manufacturers could source parts in Japan to make cars and trucks in Britain and sell them duty-free in the UK. Mexico, for example. Tariffs on some UK exports would also drop faster under the CPTPP than under its bilateral trade pacts.