UK-Asia Trade Deal to Increase UK Economic Growth by 0.08%
The UK has inked an agreement which will facilitate their entry into a trade agreement with 11 nations in the Asia-Pacific area, three years after their withdrawal from the European Union.
Their accession to this group is expected to bolster exports, particularly those of dairy products, automobiles, confectioneries, machinery, gin and whisky, after levies on them have been lowered.
Be that as it may, their own estimations have suggested that the UK's economy will see a growth of only 0.08% as an outcome of their association with this bloc, which covers a customer base of around 500 million individuals.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership was concluded in 2018 and brings together Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The CPTPP abolishes restrictions on trade between its members, as well as reducing tariffs - a kind of border tax - on goods.
The UK has become the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after 21 months of negotiations, making it the biggest trade deal since Brexit.
Together, the 11 members account for around 13% of the global GDP.
Although there may be some gains to come from joining, they are expected to be small. The UK already has free trade agreements with all of the members except Brunei and Malaysia, many of which were previously established through the UK's membership of the European Union.
The UK government predicts that joining the CPTPP will boost the size of the UK economy by 0.08% over the next 10 years. This estimate is dwarfed by the 4% potential reduction in UK economic growth in the long run which was forecast by the Office for Budget Responsibility (OBR).
Prime Minister Rishi Sunak declared the new Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) a testament to the "real economic benefits" of post-Brexit freedoms. He highlighted the prospect of new jobs, growth and innovation that would come with it.
Business and Trade Secretary Kemi Badenoch echoed those sentiments, describing the deal as "buying a start-up". She further added that the agreement would give British businesses unprecedented access to markets in Europe to the south Pacific.
Kemi Badenoch, a UK minister, has stressed that the recently signed trade deal with the Pacific Rim nations is not to take the place of EU trade but to be in addition to it, making it clear during an interview on BBC Radio 4's Today programme.
Describing the potential benefits of the deal, Badenoch said, You wouldn't buy a small company like that and expect it to be delivering on the day - we are thinking about the potential. In seven years, 40% of the world's middle class is going to come from that region.
Badenoch also contested the idea that UK agriculture would be adversely impacted by the deal, instead stating that it could create new markets for farmers.
The government declared that among the additional advantages of being part of the bloc was an augmentation in the services sector, in that UK enterprises won't be necessitated to build up a local operation or be domestically based in order to provide a service, which would place them at an equal level to local enterprises. They also stated that they and the other members of the CPTPP would undertake the obligatory legal and administrative activities to officially sign in 2023.