UK begins process to join Asia – Pacific trade bloc

The British government asked to join the Trans-Pacific Partnership (TPP) in February, a year after it officially left the EU. The representative of the Government said: “Joining the group of “fast-growing nations” will boost UK exports.”

In order to prepare for negotiations, a working group is now expected to be set up to discuss tariffs and rules governing trade and investment to reach agreements for both the two parties.

UK plans to shift its economic centre of gravity away from Europe

Liz Truss, the UK International trade secretary said in a statement that the decision to begin the accession process was “excellent news”. She added: “It will help shift our economic centre of gravity away from Europe towards faster-growing parts of the world, and deepen our access to massive consumer markets in the Asia Pacific. We would get all the benefits of joining a high-standards free-trade area, but without having to cede control of our borders, money or laws.”

In another interview with BBC, Liz Truss commented: “In future it’s going to be Asia-Pacific countries in particular where the big markets are, where growing middle-class markets are, for British products.”. Moreover, this deal would deepen some of those ties – and allow UK manufacturers who source components from multiple nations in the bloc some benefits under “rules of origins” allowances.

Since Brexit, the UK government has sought to replace many of the trade deals it had made as a member of the EU, but has yet to sign one with a new country or trade area. Coming to this agreement can be seen as opening a new prospect for the economy of this country.

The TPP’s current members are Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru which cover a market of nearly 500 million people. Thus, China, South Korea, Taiwan and Thailand have also expressed interest in joining this trade bloc.

Beside TPP, the UK is currently negotiating a trade deal with Australia, which has raised fears among British farmers that their domestic markets could be flooded with cheaper beef and lamb. However, the UK government has said farmers and exporters generally should view such deals just as opening up new markets overseas.