{"id":33771,"date":"2024-12-16T18:18:25","date_gmt":"2024-12-16T12:48:25","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=33771"},"modified":"2024-12-16T18:18:26","modified_gmt":"2024-12-16T12:48:26","slug":"uk-joins-cptpp-agreement","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/16-12-2024\/uk-joins-cptpp-agreement","title":{"rendered":"UK Joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)"},"content":{"rendered":"\n

Syllabus: GS2\/ International Relation<\/strong><\/p>\n\n\n\n

In News<\/strong><\/h2>\n\n\n\n
    \n
  • Britain became the 12th member of the CPTPP<\/strong>, marking its most significant trade deal since Brexit.\n
      \n
    • Britain joins Japan, Australia, Canada, and eight other nations in this trans-Pacific trade pact.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?<\/strong><\/h2>\n\n\n\n
        \n
      • Historical Context:<\/strong> Originated as the Trans-Pacific Partnership (TPP)<\/strong>, a U.S.-led trade pact.\n
          \n
        • Renamed the CPTPP after the U.S. withdrew in 2017 under President Donald Trump.<\/strong><\/li>\n\n\n\n
        • The agreement now includes 12 members<\/strong> and aims to foster economic cooperation across the Pacific.<\/li>\n\n\n\n
        • These countries were<\/strong> – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Objective: <\/strong>The pact requires countries to eliminate or significantly reduce tariffs and make strong commitments to opening services and investment markets.\n
            \n
          • It also has rules addressing competition, intellectual property rights and protections for foreign companies.<\/li>\n\n\n\n
          • The bloc accounts for about 15% of global GDP<\/strong> and provides trade access to a market of more than 500 million people.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

            Implications of Joining<\/strong><\/h2>\n\n\n\n
              \n
            • Expanded Market Access: <\/strong>The CPTPP provides the UK with preferential access to a large and growing market in the Indo-Pacific region. This can boost exports and create new opportunities for British businesses.<\/li>\n\n\n\n
            • Diversification:<\/strong> Joining the CPTPP helps the UK diversify its trade relationships beyond Europe, reducing its reliance on traditional markets.<\/li>\n\n\n\n
            • Rules of Origin:<\/strong> The agreement offers more flexible rules of origin, allowing UK businesses to source components from a wider range of countries within the CPTPP, potentially lowering production costs.<\/li>\n\n\n\n
            • Limited Impact on GDP: <\/strong>While the estimated economic gains are relatively small in terms of GDP percentage, the deal’s long-term impact on trade patterns and investment could be more significant.<\/li>\n\n\n\n
            • Indo-Pacific Tilt:<\/strong> Joining the CPTPP signals the UK’s commitment to engaging more deeply with the Indo-Pacific region, a key area of economic and strategic importance.<\/li>\n\n\n\n
            • Countering China:<\/strong> The CPTPP is seen as a way to counter China’s growing economic influence in the region. The UK’s membership strengthens the bloc and its ability to set trade standards.<\/li>\n\n\n\n
            • Influence over Membership:<\/strong> The UK now has a voice in deciding whether to admit new members, including China and Taiwan, which has significant geopolitical implications.<\/li>\n<\/ul>\n\n\n\n

              Challenges\u00a0<\/strong><\/h2>\n\n\n\n
                \n
              • Competition: <\/strong>UK businesses will face increased competition from other CPTPP members, particularly in sectors like agriculture.<\/li>\n\n\n\n
              • Regulatory Alignment:<\/strong> While the CPTPP does not require full regulatory harmonization like the EU, there will be some adjustments needed for UK businesses to comply with the pact’s rules.<\/li>\n<\/ul>\n\n\n\n

                Challenges and Considerations<\/strong><\/h2>\n\n\n\n
                  \n
                • Competition:<\/strong> UK businesses will face increased competition from other CPTPP members, particularly in sectors like agriculture.<\/li>\n\n\n\n
                • Regulatory Alignment: <\/strong>While the CPTPP does not require full regulatory harmonization like the EU, there will be some adjustments needed for UK businesses to comply with the pact’s rules.<\/li>\n\n\n\n
                • Impact on Existing Agreements:<\/strong> The UK needs to ensure that its CPTPP membership complements its existing trade agreements with other countries.<\/li>\n<\/ul>\n\n\n\n

                  Way Ahead For India<\/strong><\/h2>\n\n\n\n
                    \n
                  • Recently, NITI Aayog CEO BVR Subrahmanyam <\/strong>also advocated that India should be a part of the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.<\/li>\n\n\n\n
                  • India can get access to a wider range of markets<\/strong> with reduced tariffs can boost India’s exports, particularly for its MSME sector, which is crucial for employment and economic growth.<\/li>\n\n\n\n
                  • Joining these trade blocs can help India integrate more deeply into global value chains<\/strong>, leading to increased investment, technology transfer, and productivity gains.<\/li>\n<\/ul>\n\n\n\n

                    Source: LM<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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