Brexit boost as new Pacific Trade Act receives Royal Assent | Politics | News


Britain has taken a major step to joining a £12 trillion international trade bloc in what would be the biggest Brexit prize yet.

Business Secretary Kemi Badenoch said the new Trade (CPTPP) Act has now become law – paving the way for the UK to formally join the vast Indo-Pacific trade group later this year.

She said joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership would open up a “new era” for British businesses.

It will open major new markets for UK goods from cars and textiles to whisky, cheese, beef and lamb – and could mean lower prices for everything from coffee and kiwi fruit to clothing and electronics.

And unlike the EU, there is no requirement to surrender British sovereignty or be governed by judges sitting in a foreign land.

Economists have described membership of the 11-country bloc as a “massive global event”.

Ms Badenoch signed off the deal to join CPTPP in New Zealand last July.

The new trade act has now received Royal Assent after passing through parliament.

Ms Badenoch said: “I am delighted that the CPTPP Bill has become law – a major step towards the UK becoming a full-fledged member of the Indo-Pacific bloc and the many benefits that will come with that membership.

“We are leveraging our freedoms as an independent trading nation to open-up a new era of partnership with the fast-growing economies of tomorrow.

“Becoming a member of CPTPP offers brilliant new opportunities for British businesses and consumers through greater access to a market of over 500 million people – helping to grow the UK economy.”

Britain is the first European country to win approval for membership of the trade partnership which brings together 11 major economies including Canada, Mexico, Australia, Malaysia, Vietnam and Japan.

Together, the 11 members account for about 15% of the world’s income.

Minister of State for Trade Policy Greg Hands said: “This is exciting news for British businesses up and down the country.

“My message to the British business community is clear – start looking now at what this deal can do for you, so you are ready to take full advantage of the brilliant opportunities it presents when the deal comes into force.”

William Bain, head of Trade Policy at the British Chambers of Commerce said: “Royal Assent for CPTPP is a red-letter day for our traders. UK companies will have more flexibility in their supply and manufacturing chains, easier ability to transfer data, and stronger procurement and investment opportunities in a fast-growing part of the global economy.”

The agreement is seen as a gateway to the Indo-Pacific, a region set to account for the majority of global growth and around half of the world’s middle-class consumers in the coming decades.

Director General of the Institute of Export & International Trade Marco Forgione said: “This is an important event which will help reshape the UK economy for the future. As well as trade in goods and preferential agreements on cumulation and rules of origin, entry into CPTPP opens up high growth markets to the UK’s world leading services sectors.

“The partnership with CPTPP nations in South East Asia, Central and South America can help us build resilient and robust supply chains, which are essential in an increasingly uncertain geo-political landscape where trade is being weaponised. As we’ve seen with the success of the Australia Free Trade Agreement there is tremendous demand for U.K. goods and services in CPTPP markets.”



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