1st April 2023 (8 Topics)
1
Apr
3
Apr
4
Apr
5
Apr
6
Apr
7
Apr
8
Apr
10
Apr
11
Apr
12
Apr
13
Apr
14
Apr
15
Apr
17
Apr
18
Apr
19
Apr
20
Apr
21
Apr
22
Apr
24
Apr
25
Apr
26
Apr
27
Apr
28
Apr
29
Apr
U.K. to join Trans-Pacific Partnership
Context
The U.K. has recently acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP):
- It is a free trade agreement (FTA) between 11 nations.
- It was signed in March 2018.
- It succeeded the Trans-Pacific Partnership (TPP) after the United States withdrew from the TPP in 2017.
- All 11 countries of CPTPP are members of the Asia-Pacific Economic Cooperation (APEC).
- Member countries:
- Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.
- It accounts for nearly 13% of global GDP.
|
Asia-Pacific Economic Cooperation (APEC):
|
About the agreement:
- The agreement between the UK and trans-pacific countries will now need to be ratified by Westminster and each of the CPTPP countries.
- The British government said the deal would mean that more than 99% of British exports — including for key markets such as cheese, cars, chocolate, machinery, gin and whisky — would have zero tariffs.
Significance:
- Boost to GDP: It also claimed that the deal would add GDP 1.8 billion ($2.2 billion) annually to the U.K. economy in the long run. This, however, translates to a modest boost of 0.08% to GDP.
- Post Brexit Freedom: Prime Minister Rishi Sunak describing the outcome as an example of “post-Brexit freedoms”, which will help Britain’s economy.
- Gateway to Indo-pacific: The government said the deal was a “gateway” to the Indo-Pacific region which would account for a majority (54%) of global economic growth in the future.
- Benefits to companies: Once Britain becomes a member of the bloc, U.K. firms will not need to establish a local office or be resident to provide services and will be able to operate on a par with firms in host countries, the government said.
What’s good about TPP?
- New economic growth: Those in favour say this trade deal will unleash new economic growth among countries involved.
- Improve people’s living standards: It is being said that the TPP has high potential to improve people’s living standards by facilitating the free cross-border movement of key factors of economic activity, such as goods, people, money, and information.
- Failure to bring the TPP into force would be a great loss to not only the TPP countries such as Japan and the US but also the global economy.
More Articles
Courses
Study
Notes
Home
Resources
More
