Britain is considering joining a trade partnership between the US, Canada and Mexico or the Asia-Pacific Free Trade Group after Boris Johnson abandoned his dream of a bilateral deal with Washington.
The prime minister did not consider a direct free trade agreement (FTA) with Britain high on US President Joe Biden’s list of priorities after a meeting with his US counterpart at the White House on Tuesday.
trade relations with the US instead by exploring other avenues such as the UK inserting itself as a fourth member of the US-Mexico-Canada Agreement (USMCA) or joining the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP). Will consider making it better. handjob Granthshala understands.
We have taken a look at two trade agreements and what they could mean for the UK.
The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) is a major free trade area including Australia, Canada, Japan and Singapore.
The CPTPP was born out of the Trans-Pacific Partnership (TPP), a group promoted by then-US President Barack Obama as part of Washington’s growing emphasis on ties with Asia.
Obama’s successor, Donald Trump, dropped out in 2017 and Biden did not rejoin the group.
The UK revealed it was formally applying in January 2021 and talks began in June.
The CPTPP, which took effect in 2018, includes agreements on market access, movement of labor and government procurement.
The Department of International Trade said joining the trade group would cut tariffs on food, beverage and cars and improve access to markets for its members such as Mexico, New Zealand and Vietnam.
Other benefits are said to include easier travel and cheaper visas between partner countries.
If accepted, the UK would become the first European member to join Canada, Australia, New Zealand, Brunei, Chile, Japan, Malaysia, Mexico, Peru, Singapore and Vietnam.
China has also applied in an effort to increase its influence on international policies, while Taiwan is expected to join.
If China joins in, it will quadruple the total population within the group to about 2 billion people.
Britain could also bid to join a trade partnership between the US, Canada and Mexico as the fourth member in the US-Mexico-Canada Agreement (USMCA).
The USMCA came into force in July 2020 as a replacement for the 1994 North American Free Trade Agreement (NAFTA), which was torn down by Donald Trump.
Covering sectors from motor vehicles and steel to agricultural produce and data transfer, Washington said the deal should boost US GDP by $68 billion and create 176,000 jobs.
Britain already has trade agreements with Canada and Mexico. So the main benefit of joining would be tied to the US element of the deal.
Before this there has been no talk of extending the three-nation system beyond the continent.
Credit: www.independent.co.uk /