Brexit Britain will reap three huge rewards from a £12trillion mega trade deal struck by Kemi Badenoch, an expert has said. The Business Secretary has formally signed a treaty which will see the UK accede to an Indo-Pacific trade bloc in a huge win for the UK. It kickstarts the country’s membership of the CPTPP deal which spans 12 economies across Asia, the Pacific and now Europe.
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Marco Forgione, Director General of The Institute of Export & International Trade, told Express.co.uk the signing of the deal is an incredibly exciting moment for British business and the public.
He said: “There are three key areas we need to look at when assessing CPTPP. The first is the economic benefits and the opportunity for UK goods and services as well as for foreign direct investment to grow under the terms of this deal.
“This will undoubtedly encourage a new wave of inward investment into the UK creating jobs across the country.
“The second is around supply chain resilience, as we’ve seen in recent years the disruption that’s occurred to existing supply chains through COVID-19 and the war in Ukraine. The CPTPP accession is an important step in the UK reframing and developing really resilient supply chains.
“The relationship we now have with key economies, like Canada, Mexico, Australia, New Zealand, Japan, means that we are able to strengthen supply chains to make sure that they are more sustainable to support UK businesses.”
Mr Forgione lastly pointed to the geopolitics of the deal because CPTPP is “one of the most modern and progressive” trade agreements.
He said: “It is structured around the principles of a liberal free trade rules-based environment. When you look at the shift in what the future of trade is going to be, this places the UK right at the very heart of that and will help support the UK economy as it seeks to grow over the coming decades.”
Ms Badenoch sealed the deal in Auckland, New Zealand, on Sunday alongside trade officials from member countries including Canada, Japan, Australia, Malaysia, Mexico, Peru, Singapore and Vietnam.
The signing is official confirmation of agreement for Britain to join the group and comes after negotiations earlier this year.
Ms Badenoch said ahead of the signing: “I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.
“We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”
The Government now has to ratify the agreement – which will include parliamentary scrutiny – while other countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) complete their own legal sign off.
Britain will be the first European country to join and the first member since the CPTPP was formed, which would have been impossible had the UK stayed in the European Union.
With the UK as a member, CPTPP will have a combined GDP of £12trillion and account for 15 percent of global GDP, according to the Government which expects to bring the agreement into force next year.
Membership of CPTPP will mean more than 99 percent of current UK goods exports to CPTPP countries will be eligible for zero tariffs.
This includes dairy farmers who the Government says will benefit from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico. This builds on the £23.9million worth of dairy products the UK exported to these countries last year.
A Government report found CPTPP investment accounted for more than £240billion in turnover in London; £35billion in the southeast and £18billion in the east of England. It also shows 75 percent of all employment in CPTPP-owned businesses was outside the capital with one in 50 jobs in the northeast and one in every 25 jobs in the manufacturing sector.
HSBC UK Chief Executive, Ian Stuart, said: “The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology.”
Cath White, Head of International at Leicestershire-based soft drinks producer Belvoir Farm, said Britain’s accession to CPTPP will mean more than 99 percent of UK goods exported to member countries will be eligible for zero tariffs.
She added: “It will also ease administrative and commercial trade barriers to allow talented and passionate UK producers to tell their story on a worldwide scale.”
