N. Peter Kramer’s Weekly Column
The UK became the first European nation to join a major Indo-Pacific trading bloc, in what has hailed as the country’s biggest trade deal since Brexit. The UK is officially now the 12th member of the CPTPP, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Officials hope this membership will boost the economy by £2 billion (€2.5 billion) a year.
The alliance comprises other G7 members Canada and Japan, longtime allies Australia and New Zealand, and Mexico, Chile, Peru, Malaysia, Brunei, Singapore and Vietnam. Created in 2018, it has been seen as a bulwark against Chinese dominance in the region. The CPTPP accounts for about 15% of the global GDP and will give British business trade access to a market of more than 50 million people.
The previous Conservative government signed the UK up already in July 2023. Then Business and Trade Secretary Kemi Badenoch called it ‘the biggest trade deal’ since the UK left the EU’s single market at the beginning of 2021. The UK is pursuing a trade deal with Gulf countries, but one with Canada has so far failed to materialise. Last month Labour Prime Minister Keir Starer announced that his country and India are to resume stalled talks to agree a deal.
The much sought-after trade deal with the United States remains elusive. It becomes even less likely when Donald Trump enters the White House on January 20.
