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First expansion! The United Kingdom officially joined the CPTPP, the next is China?
Jul 18,2023
On July 15, the ministerial meeting of the members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was held in Auckland, New Zealand. The meeting finally made a major decision since the establishment of the Asia-Pacific trade group: formal approval of Britain's accession to CPTPP.
On the 16th, the British Minister of Commerce and Trade Kemi Badenoch (Kemi Badenoch) signed an agreement to join the CPTPP in New Zealand.
She said, "I am very happy to be in New Zealand to sign this agreement, which will greatly promote the development of British businesses and bring billions of pounds of additional trade, while also opening up a market for the UK with more than 0.5 billion people."
The UK is the first country to join the CPTPP since it was established in 2018.
For the UK, it is also the biggest trade deal the country has struck since it left the EU more than three years ago.
Britain "Brexit into Asia-Pacific"
The United Kingdom formally applied to join the CPTPP on February 1, 2021. In June of the same year, the CPTPP initiated the UK's entry process and established a working group.
Earlier in March this year, after a round of intensive talks in Vietnam, all CPTPP members agreed to join the United Kingdom.
Prime Minister Rishi Sunak said at the time that it was proof that his government was seizing on "post-Brexit freedom".
Sunak said at the time that "joining the CPTPP makes the United Kingdom the center of a dynamic and growing group of Pacific economies, and becomes the first new country to join the group and the first European country to join."
With the accession of the United Kingdom, CPTPP member states will increase to 12 countries, but also for the first time the "tentacles" extended to the European region.
About CPTPP
Previously, the initial members of the CPTPP includedAustralia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and Viet Nam.
These countries cover more than 0.5 billion million people and account for 15% of the world economy.
The CPTPP was formerly known as the TPP (Trans-Pacific Partnership Agreement), which was signed by 12 countries including the United States, Australia, Canada, Japan, Singapore, and Vietnam in October 2015.
In January 2017, the then US President Trump signed an executive order after taking office, announcing his withdrawal from the TPP.
After the withdrawal of the United States, Japan began to lead the promotion of TPP into effect, and TPP was subsequently renamed CPTPP.
Shigeru Goto, Japan's minister in charge of economic regeneration, said over the weekend that Britain's entry would strengthen the trading bloc.
He pointed out that "reaching this agreement in a way that maintains high standards sets an exemplary precedent for more member states to join in the future."
New Zealand Prime Minister Hipkins (Chris Hipkins) also said that Britain's accession is good news for the trading bloc.
Since Brexit, the UK has signed separate trade deals with Australia and New Zealand.
On the impact of Britain's accession on New Zealand's economy, Shipkins said, "trade is not only a priority for this government, but also essential to our economic recovery and to improving the lives and livelihoods of all New Zealanders."
The British government has earlier said that after joining the CPTPP, more than 99% of British exports to CPTPP countries will now be eligible for zero tariffs,Includes products such as cheese, cars, chocolate, machinery, gin and whiskey.
Of course, many people in the industry said that the boost effect of joining the CPTPP on the British economy may not be very significant, let alone comparable to the original loss of Brexit.
As part of its earlier membership of the EU, the UK has reached free trade agreements with most of these countries, and these agreements have been renewed since then.
Before joining the CPTPP, Britain was left with only Brunei and Malaysia, which account for less than 0.5 per cent of Britain's total trade.
According to the British government's own estimates, in the long run, the CPTPP agreement will only boost Britain's GDP by 0.08 per cent over a decade.
That number could rise if more Asian economies join the group in the future.
Will China join?
It is worth mentioning that if the order of the earlier received applications, the approval of China's application to join the agreement will now be the next object of processing-China formally applied to join the CPTPP in September 2021.
Wang Shouwen, international trade negotiator and vice minister of the Ministry of Commerce of China, said that China has the will and ability to join the CPTPP and meet the high standards of the CPTPP.
China's accession will also bring benefits to all CPTPP members and add new impetus to trade and investment liberalization in the Asia-Pacific region.
A set of data shows that among the existing 12 member states of the CPTPP,The largest trading partner of eight countries is China.Both Japan and Singapore have large investments in China.
Therefore, if the political interference factors are excluded, it is clear that China's accession will bring benefits to CPTPP.
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