Don’t underestimate the free trade agreement Britain just joined
The UK’s entry into the CPTPP, the world's largest free trade area that does not include the US, EU or China, should not be underestimated.
Don't underestimate the UK's recent full entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the world's largest free trade area without the US, China, or EU, writes Australia's former Minister for Foreign Affairs Alexander Downer. This development, amid global market turbulence including a US-Canada trade war and a Middle Eastern conflict, represents a significant and positive shift in the economic and geopolitical landscape.
The CPTPP comprises a diverse group of middle power economies such as Canada, Australia, Japan, New Zealand, Singapore, Chile, Mexico, Peru, Malaysia, Brunei, and Vietnam. Holding a combined GDP of around £13 trillion – almost as large as the EU – the CPTPP offers the UK substantial economic and geopolitical advantages. Policy Exchange, chaired by Downer, first advocated for UK membership in 2018, and the country signed the agreement in 2023, awaiting Canada's agreement for full membership.
The UK now benefits from enhanced access to Canada's public procurement markets and easier travel arrangements with Canadian businesses. With an estimated £2 billion annual economic boost for the UK, the CPTPP helps stabilize trade relationships amid global trade wars. Being the second-largest CPTPP member by GDP, only behind Japan, and the only non-Pacific Rim country, the UK's membership positions it to encourage other nations to join.
Vietnam and Malaysia, key manufacturing hubs, provide an alternative supply chain to China, vital in an uncertain world. Geopolitically, the CPTPP gives the UK increased influence over the US and China if they join in the future. Moreover, the CPTPP expands the UK's role in the Indo-Pacific region, offering market opportunities for UK services and 'regulatory diplomacy' in emerging technologies and intellectual property.
In summary, the UK's full CPTPP membership should be seen as a crucial step for securing economic and geopolitical security in the future.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
