Home » World » The UK will apply to join the CPTPP: Why join? What is the prospect of joining? _Member States

The UK will apply to join the CPTPP: Why join? What is the prospect of joining? _Member States

Original title: The UK will apply to join the CPTPP: Why join? What is the prospect of joining?

China News Service, Beijing, January 31st (Liu Liang) The British government announced on the evening of the 30th local time that it would formally apply for membership in the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) on February 1. The news aroused widespread concern as soon as it came out. .

What is CPTPP?

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is also called “Comprehensive and Progressive Agreement for Trans-Pacific Partnership” in Chinese. The agreement was signed and entered into force by 11 member states in 2018. The 11 member states are: Japan, Canada, Australia, Chile, New Zealand, Singapore, Brunei, Malaysia, Vietnam, Mexico and Peru. According to British media reports, the agreement covers a population of 498 million, and the combined GDP of the member states accounts for about 13% of the global economy.

At first glance, CPTPP may seem unfamiliar, but in fact, CPTPP also has a predecessor called “TPP” (“Trans-Pacific Partnership Agreement”). It can be said that CPTPP is an “updated version” of TPP. According to Reuters, former U.S. President Trump announced his withdrawal from the TPP after he took office in 2017, and countries that originally intended to join the TPP subsequently reorganized the CPTPP.

The BBC reported that the main purpose of CPTPP is to reduce trade tariffs between member states, a form of taxation similar to border taxes. It includes a commitment to cancel or reduce import fees by 95%.

In return, member states are obliged to cooperate in food standards and other regulations. However, unlike the EU, CPTPP is neither a single market nor a customs union. Therefore, member states do not need to have the same regulations and standards. In addition, member states can also sign their own trade agreements with other countries.

Why did the UK join the CPTPP?

It’s also a coincidence that the 31st of this month coincides with the full year of Britain’s formal “Brexit”. Britain’s choice to join the CPTPP at this critical point is quite interesting.

“One year after we leave the European Union, we are establishing a new partnership, which will bring huge economic benefits to the British people.” British Prime Minister Johnson said in a statement, “Apply to become the first new member to join the CPTPP. The country has demonstrated our ambition to conduct business with friends and partners from all over the world in the best conditions and hope to become a passionate supporter of global free trade.”

The relevant person in charge of the British Department of International Trade also stated that joining the CPTPP will deepen the trade links between the UK and some of the world’s fastest-growing markets and create opportunities for the UK.

According to BBC reports, the UK is the first non-founding country to apply for membership. If successful, the UK will become the second largest economy in the CPTPP after Japan.

In recent years, the UK and CPTPP member countries have also had close trade exchanges. According to data released by the UK’s Department of International Trade, the trade volume between the UK and CPTPP members will reach 113 billion pounds in 2020, an annual growth rate of 8% since 2016.

What is the prospect of joining CPTPP?

According to BBC reports, after joining the CPTPP, the UK can enjoy lower industry tariffs. At the same time, CPTPP may also provide faster and cheaper visas for business people.

In addition to trade, investors in CPTPP member countries can receive the same treatment as domestic companies when investing in projects in other member countries, which may benefit British companies. The BBC reported that in 2017, for every 12 pounds of foreign investment in the UK, 1 pound came from CPTPP countries.

But the BBC also pointed out that, in practice, short-term gains may be insignificant for businesses and households.

On the one hand, the UK has reached trade agreements with most countries in the CPTPP. On the other hand, although the British government does not list the scale of expected economic growth, in general, CPTPP countries account for about 9% of British exports and only a small part of British exports to the EU.

European analysts pointed out that the economic benefits brought to the UK in the short term are relatively limited, and the process of applying for membership is not as simple as imagined. It is expected that there will be many negotiations in the future.

In addition, Reuters reported that the CPTPP is expected to face some domestic resistance.

The report pointed out that the British government will publish an analysis of the economic impact of joining the CPTPP after the formal request to join the CPTPP, which runs counter to the earlier promise that the analysis will be published before the application.

Partisans in the United Kingdom stated that the government hastily applied to join the CPTPP without the public’s authorization, and has hardly had any proper discussions with business or civil society. The decision to apply to join the CPTPP is very important and cannot be passed without the knowledge or consent of the voters. (Finish)Return to Sohu to see more

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