Rishi Sunak hails the UK joining Indo-Pacific bloc in Britain's biggest trade deal since Brexit

31 March 2023, 07:11 | Updated: 31 March 2023, 07:12

Rishi Sunak hailed the new deal
Rishi Sunak hailed the new deal. Picture: Alamy

By Kit Heren

Rishi Sunak has welcomed the UK joining a large trading bloc of countries in the Indo-Pacific region, which marks Britain's biggest deal since Brexit.

Listen to this article

Loading audio...

The UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the early hours of Friday morning. The deal means that tariffs for British exporters to the other countries in the group will be slashed.

The entire CPTPP, including Britain - now has a total gross domestic product (GDP) of £11 trillion, accounting for 15% of global GDP.

Mr Sunak said the deal showed the UK was able to make the most of post-Brexit freedoms.

But the opposition parties said the impact would be limited, with official estimates suggesting it will add just £1.8 billion a year to the economy after 10 years, representing less than 1% of UK GDP.

The UK already has trade deals with most of the other countries in the bloc, whose members are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, officials said it would improve existing arrangements, with 99% of UK goods exported to the CPTPP now eligible for zero tariffs.

The UK is the first European country and the first new member of the bloc since it was formed in 2018. It follows nearly two years of negotiations, culminating in intensive talks in Vietnam earlier this month, when representatives of all 11 existing members agreed to let the UK in.

Mr Sunak said it would put the UK at the centre of a "dynamic" group of Pacific economies, giving British businesses "unparalleled access to markets from Europe to the south Pacific".

"We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms," he said.

Rishi Sunak
Rishi Sunak. Picture: Alamy

"As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation."

The CBI welcomed the agreement as a "milestone" for British industry, reinforcing the UK's commitment "to building partnerships in an increasingly fragmented world".

Interim director-general Matthew Fell said: "CPTPP countries and business need to work together to future proof the rules-based trading system and stimulate growth with a focus on digital, services and resilient supply chains."

Labour said that while the agreement represented "encouraging" progress, it needed to see the details.

The other members of the CPTPP
The other members of the CPTPP. Picture: Getty

Shadow trade secretary Nick Thomas-Symonds said: "The Conservative Government's track record in striking good trade deals is desperately poor.

"Other countries joining CPTPP arrangements have secured important safeguards and put in place support for their producers: it is vital that ministers set out if they plan to do the same."

Read more: Brexit as bad for economy as Covid and war in Ukraine, head of government's watchdog says

Read more: PM's new Brexit deal for Northern Ireland receives backing of MPs - despite Boris Johnson and Liz Truss revolt

Liberal Democrat trade spokeswoman Sarah Green said: "This Conservative Government is responsible for some shocking trade deals that fail to add economic benefit to the UK.

"The Conservatives have trashed the British economy with GDP stagnant and this announcement will not even repair a fraction of their damage."

More Latest News

See more More Latest News

Man 38, lay dead in council toilet for six days before being found

Body of 'gentle giant', 38, lay undiscovered in council toilet for six days before he was found

Novak Djokovic (SRB) [6] during his Gentlemen's Singles Semi-Final match against Jannik Sinner (ITA)

Djokovic states aim to be oldest ever Wimbledon winner

London Southend Airport has partially reopened three days after a fatal plane crash.

London Southend Airport to partially reopen three days after deadly plane crash

Amanda Riley, 49, and Linda Philips, 72, both died on December 26 2023, following a collision in Shard End

Driver who killed mother and daughter on Boxing Day was ‘racing’ at up to 84mph in 30mph zone

Daniel Ames

'Much-loved family man' killed by reversing HGV after he offered to stay behind at work

Captain Sir Tom Moore's daughter Hannah Ingram-Moore

Captain Tom's daughter launches TikTok rebrand as ‘resilience coach’ one year after charity controversy

As the news reporter is presenting - a huge explosion is captured erupting in the background.

Shocking moment Israeli airstrike blasts Syria military HQ on live TV as news reporter flees in terror

Luke Littler posted about failing his driving theory test on his Instagram story.

Luke Littler fails driving theory test... for the fourth time 'and counting'

Smoke billows following Israeli strikes near the Syrian army and defence ministry headquarters in Damascus.

Israel warns 'painful blows will come' as it ramps up strikes on Syria and sends more troops to the border

Footballer Mckenzie Dicicco killed another non-League player in a "cowardly" one-punch attack after a "nonsensical argument"

Footballer who killed another player in ‘cowardly’ one-punch attack jailed

Crystal Palace have been dumped out of the Europa League.

Crystal Palace confirm plans to appeal UEFA decision after being dumped out of Europa League

Different milks on sale in a supermarket UK

Plant-based milk not 'nutritionally equivalent' to cows' milk, experts say

Axel Rudakubana

Prevent programme should continue referrals for no ideology, report recommends

Nintendo has revealed the names of the lead actors starring in the upcoming live-action The Legend of Zelda film.

Nintendo releases names of leads for upcoming live-action The Legend of Zelda movie

Harvey Willgoose was fatally stabbed to death. Picture: Family handout

'I can't control it': Boy who stabbed fellow pupil Harvey Willgoose to death tells jury being 'bullied' led to 'anger issues'

Six guilty of murder after drug dealer shot dead after serving sentence over dismembering of body

Six guilty of murder of drug dealer shot dead after serving jail time for dismembering body of jazz musician