Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

IAS Current Affairs

1 year ago

Overview

The UK has formally agreed to join a significant Indo-Pacific trading bloc, making it the first European nation to do so.

This agreement is Britain’s greatest trade agreement since Brexit, despite estimates that it will only be worth £1.8 billion annually.
Government’s business and trade secretary Kemi Badenoch signed the accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand.
This require parliamentary scrutiny and legislation in the UK to bring it into force.

The 11 countries involved are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
It is a free trade agreement (FTA).
In March 2018, it was signed.
After the United States withdrew from the Trans-Pacific Partnership (TPP) in 2017, it replaced it.
The Asia-Pacific Economic Cooperation (APEC) is a membership organisation made up of all 11 CPTPP nations.
Also known as TPP12 or TPP-12.
It also has rules addressing competition, intellectual property rights and protections for foreign companies.
The agreement calls on nations to commit firmly to opening services and investment markets and to abolish or significantly lower tariffs.
India is not a member.

How CPTPP benefits UK?

The CPTTP, according to the UK government, will lower tariffs for UK exports to Asia Pacific nations.
With the UK as a member, the trading bloc’s combined GDP will reach 12 trillion pounds, accounting for 15% of world trade.
After Brexit in 2020, Britain is eager to strengthen commercial connections in the Pacific.
The UK’s long-term productivity is forecast to be reduced by 4% as a result of Brexit.
The UK will probably have trouble securing free trade agreements with powerful nations like China.

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