On Friday, Britain announced the deal on the Trans-Pacific Free Trade Partnership after 21 months of negotiations, the most important trade deal since leaving the European Union. The prime minister’s statement said the UK was the first European country to join the partnership agreement, which includes 12 countries with a combined gross domestic product of £11 billion. Partner countries are home to 500 million people and account for 15% of global GDP.
The prime minister highlighted the fact that she would not be able to join the association if she were still a member of the EU and praised how she is “seizing the opportunity” of “new commercial freedoms” in the post-Brexit era.
He revealed that over 99% of British goods exports to TPP member countries are now duty free, particularly on products such as cheese, cars, chocolate and automobiles, as well as spirits.
The service sector will also benefit from the shortened administrative procedures provided for in the agreement.
According to estimates by London, the contribution of this association to the British economy will amount to 1.8 billion pounds, which means that it represents a small part of its economic activity.
In this regard, the specialist in Capital Economics, Ashley Webb, explained that this “has a weak effect, given the economic loss of 3.2 percent until 2026, as a result of Great Britain’s exit from the European Union, according to estimates from the Bank of England”. “However, the deal could improve Britain’s international relations and the perception of the UK as a trading partner,” she added.
In a statement, Prime Minister Rishi Sunak said that by joining the partnership, the UK would place itself “at the center of a dynamic and growing group of Pacific economies”. “British companies will now benefit from unrivaled access to markets from Europe to the South Pacific,” said Sunack.
Commerce Minister Kemi Badnoush also highlighted the benefits in terms of employment and expanded access to the Indo-Pacific region, where “the bulk of global growth” is expected.
Association member Japan welcomed the news on Friday, with government spokesman Hirokazu Matsuno calling Britain a “global strategic partner”.
Member States and the UK must complete the final legal and administrative steps before they can officially sign off on membership this year.
The United Kingdom applied for the Trans-Pacific Partnership in February 2021. It should be noted that the former President of the United States, Donald Trump, withdrew his country from this agreement in early 2017, even before its entry into force.
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