UK Shifts Focus to China with Pacific Trade Deal
The United Kingdom is set to sign a major trade deal with 11 Pacific nations, shifting its focus away from the European Union and towards China. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between the UK and 11 other countries, including Australia, Canada, Japan, and Mexico. The deal is expected to come into effect in early 2024 and will cover a range of areas, including goods, services, and investment.
Background of the CPTPP
The CPTPP was originally signed in 2018 by the 11 countries, but the UK was not a part of the agreement at the time. The UK had been negotiating its own trade deal with the EU, which was finalized in late 2020. With the UK now out of the EU, it has been able to pursue its own trade deals with other countries. The CPTPP is the first major deal the UK has signed since leaving the EU.
Benefits of the CPTPP
The CPTPP is expected to bring a range of benefits to the UK. It is estimated that the deal could add up to £15 billion to the UK economy over the next 15 years. The deal is also expected to create new opportunities for UK businesses, as it will open up new markets for them to export to. The agreement will also reduce tariffs on goods and services, making it easier for UK businesses to trade with the 11 countries.
UK’s Focus on China
The CPTPP is seen as a way for the UK to shift its focus away from the EU and towards China. The UK has been looking to strengthen its ties with China in recent years, and the CPTPP is seen as a way to do this. The agreement will give the UK access to the Chinese market, which is the world’s second-largest economy. It will also give the UK a platform to negotiate a free trade agreement with China in the future.
Reaction to the CPTPP
The CPTPP has been met with a mixed reaction from the UK. Some have welcomed the deal, arguing that it will open up new markets for UK businesses and create new opportunities for them. Others have expressed concern about the UK’s focus on China, arguing that it could lead to the UK becoming too reliant on the Chinese market.
Implications of the CPTPP
The CPTPP is a major step for the UK in its post-Brexit trade policy. It is the first major trade deal the UK has signed since leaving the EU, and it is expected to bring a range of benefits to the UK economy. The agreement is also seen as a way for the UK to shift its focus away from the EU and towards China. The implications of the CPTPP will be felt for years to come, as the UK continues to negotiate new trade deals with other countries.