Last week, International Trade Secretary Liz Truss announced Britain will press ahead with a bid to join a major trade tie-up between countries including Canada, Australia and New Zealand after leaving the EU. According to The Times, Ms Truss said that the partnership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is the “next logical step” for post-Brexit Britain. She added: “I say to our old friends, Britain is back.”
The CPTPP is a high-quality free trade agreement which binds together Australia, New Zealand, Canada, Japan, Singapore, Vietnam, Mexico, Malaysia, Peru, Chile and Brunei.
It covers nearly 14 percent of the global economy.
If the UK were to join the partnership, this share of global GDP is expected to rise to about 16 percent.
Australia and Japan have already informally pledged their support for British membership and others are unlikely to raise major objections.
Moreover, in a recent report for The Diplomat, independent research fellow Yukari Easton, whose research focus is upon international relations, diplomacy, and security issues in the Asia-Pacific region, explained why Britain’s interest in the group is viewed with particular interest by Tokyo.
The earlier incarnation of the Trans-Pacific Partnership (TPP) was originally conceived as an economic pillar supporting former US President Barack Obama’s “pivot to Asia”.
However, US participation was scrapped by President Donald Trump on his third day in office.
With the US having shunned the dream of a trading bloc that would have accounted for 40 percent of world trade, it was Japan that took the lead in making the TPP a reality.
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Ms Easton noted that the logic of closer Anglo-Japanese trade ties, either through a bilateral arrangement or under the CPTPP, is clear.
She added: “Such an achievement would represent a clear economic and diplomatic win for both nations.
“With political will on both sides to maintain the current momentum, such a deal is well within reach.”
Moreover, the academic argued that given the now certainty of the UK and EU transitional arrangements ending on December 31, the pressure is therefore on for London to rapidly conclude a free trade agreement with the bloc, as well as with its non-EU trading partners.
She concluded: “Progress in trade talks outside of Europe can only strengthen the British hand in its negotiations with the EU.”