Illustrative image. Photo: Shutterstock / TK Kurikawa

As the London government argues, membership in the CPTPP would allow UK businesses easier access to the world’s largest present and future economies, but critics point out that the gains from membership in this free zone exchange will not compensate for the economic losses associated with departure. European Union.

A free zone, also called foreign trade zone, formerly free port, is an area where goods can be unloaded, re-shipped, produced, reconfigured and re-exported without interference from customs authorities. It is only when the goods are transferred to consumers in a country outside the free trade area that they are subject to the applicable customs duties. Free zones are organized around major seaports, international airports and national borders – areas that have many geographic advantages for trade.

The CPTPP is made up of 11 countries in the Pacific region: Australia, Brunei, Chile, Japan, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, with a population of around 500 million people. Its total GDP is $ 12.5 trillion, or 13%. Mondial economy. If the UK joins them, this percentage will rise to 16%.

CPTPP. These 11 countries represent 13.5% of global GDP, or $ 13.6 trillion, making it one of the largest trade deals ever signed, just after the North American Free Trade Agreement. Source: The Sunday Times

“We left the EU with the promise to deepen our relations with former allies and the fast growing consumer markets outside of Europe, and joining the high-level Trans-Pacific Partnership is an important part of that vision. . Organic will help our farmers, creators and innovators to sell products to some of the biggest economies of today and tomorrow, but without giving up control of our rights, our borders or our money It’s the sparkling price post-Brexit which I want us to take advantage of, said UK Secretary for International Trade Liz Truss.

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The UK government has said that with membership in CPTPP, exports to these countries will increase by 65% ​​by 2030. – From 37 billion pounds, and these benefits could increase over time, such as Philippines, Korea South, Thailand and Taiwan interested in joining the agreement.

But given that the UK already has trade deals with eight of the 11 CPTPP members, joining the FTA will not translate into significant economic benefits. According to calculations by the Department of International Trade itself, following accession, Britain’s gross domestic product will increase by £ 1.8 billion over 15 years, or just 0.08%. While it should be noted that if South Korea and Thailand also join the CPTPP, this increase will be 5.5 billion pounds, moreover, there is a consistent model that does not take into account the potential growth of ‘other variables, but in any case it is less than the estimated benefits of leaving the EU. UK GDP is estimated to be 4% in 15 years. Less than it would have been had the UK remained in the EU. PAP / Sunday Times / mib

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