Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

In News

• Recently, Britain has decided to join Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

About

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership is an 11-nation Indo-Pacific free-trade bloc.
• Its members are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
• Britain will be the first new member since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was created in 2018, and the first European country in the bloc.
• The bloc, which is home to 500 million people, will be worth 15% of global GDP once the UK joins.

Importance for UK

• The UK sees this as a boost for its economic growth and geopolitical relations.
  • The UK expects growth of £1.8 billion ($2.23 billion) each year over the long-term.
  • The UK also believes membership will give it a role in setting regional trade rules over the coming decades. It  could mean the UK and other members preventing China’s future accession to the bloc.
  • Membership will eventually ensure zero-tariff trade across a range of import and export sectors, with greater UK access to Mexico, Canada and Japan for dairy exports, and a boost to Britain’s automotive and alcohol industries, particularly through the export of spirits to Malaysia.

Source:LM