News Update


According to Kemi Badenoch, the CPTPP trade agreement will benefit the UK if we use it.

Kemi Badenoch’s remarks came after she inked a pact with a trade zone that encompasses over 500 million people.

The accord is expected to offer very little benefits to the UK economy.

Ms Badenoch, on the other hand, told the Sunday with Laura Kuenssberg show that the important thing was how firms “used the agreement.”

Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018.

Membership in the CPTPP relaxes trade restrictions between members and reduces tariffs – a type of border tax – on goods.

Joining the organization is expected to enhance UK exports by lowering taxes on commodities such as dairy and meat products, automobiles, gin and whisky.

The 11 members account for around 13% of global revenue, and the UK is the first European country to join.

Despite this, the government’s own calculations show that joining the EU will only add 0.08% to the size of the UK economy over the next ten years.

The Office for Budget Responsibility (OBR), which sets government estimates, previously stated that Brexit will limit the UK’s long-term potential economic growth by around 4%.

Ms Badenoch, on the other hand, stated that the government’s estimate of the CPTPP’s impact “doesn’t look at the future growth that’s coming in, and it also doesn’t look at how we use the agreement.”

“If we don’t use it, it will become self-fulfilling,” she continued.

Ms Badenoch stated that there was “so much potential” in joining the group.

“This is the most rapidly growing region.” The Asia Pacific region will account for at least half of the worldwide growth expected between now and 2035.”

Before entering into force, the treaty will be reviewed and ratified by members, which might take at least a year.


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