As a member of Parliament’s Foreign Affairs Committee and having served previously on the European Scrutiny Committee, I have been able to see at first hand the importance of global Britain’s place as an outward-looking country.
We cannot look to keep simply to our islands or the continent: we must take a more pragmatic and world-wide approach.
The Secretary of State for Business & Trade has confirmed that, following two years of talks, the Government has substantially concluded negotiations to join the Comprehensive & Progressive Trans-Pacific Partnership (CPTPP). Existing member countries include Australia, Canada, Japan and Singapore along with others.
This will ensure Britain is at the heart of a rapidly-growing group of countries as the global economy increasingly focuses on the Indo-Pacific region: expected to account for the majority of global growth in the decades to come.
The importance of this part of the world is reflected in UK foreign policy. Last month’s Integrated Review Refresh commits to ongoing work to enhance Britain’s relationships in the Indo-Pacific, seeing the final stages of joining CPTPP as a priority. It will enable the UK to engage further with a range of countries on key issues which affect us all.
This is, of course, a trade agreement. It does not have its own president, nor parliament, nor flag nor anthem.
After Britain joins, this group will account for 16 per cent of global GDP – more than the EU whose share is declining – with membership providing new opportunities for the UK to sell more high-quality British goods and services to an existing market worth £9 trillion in GDP, with a population of more than half a billion people.
In addition to including a mix of advanced and emerging economies with a fast-growing appetite for our goods and services, UK membership will enable us to shape the Partnership’s future and with it our ability to influence the rules for the global economy.
As CPTPP grows, Britain will help improve its development to fight unfair and coercive trading practices that threaten the future of international trade. It will see UK businesses benefit from enhanced access to more markets while trading under fair rules: allowing them to compete and thrive on the global stage.
Accession to CPTPP would benefit UK exporters. Over 99 per cent of British goods exports to CPTPP member countries will be eligible for zero tariffs. This will improve market access for UK firms and going forward, joining CPTPP could lead to a £1.7 billion boost to British exports to other CPTPP countries.
British exports will also benefit from this diversification of supply chains, assisting our firms to increase economic resilience by deepening trade links in the Americas and across the Asia-Pacific.
Henry Smith MP
