UK joins the CPTPP.

[L.A.T.1961]

A trade agreement between 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Those founding members signed the Pacific trade pact in March 2018.

Between them, the club's constituents generate 13% of the world's income.

The UK is the first non-founding country to join, and will be its second biggest economy after Japan. It takes the value of the new grouping to £11 trillion.

In 2017, the CPTPP nations accounted for about £1 in every £12 of foreign investment in the UK, and the same going the other way - supporting business and jobs.

In return, countries must co-operate on regulations, such as food standards.

However, unlike the European Union, the CPTPP is neither a single market nor a customs union.

So countries are not required to have identical regulations and standards.

https://www.bbc.co.uk/news/explainers-55858490

 

The UK joining CPTPP is a seismic moment for the global trading system.

UK accession turns CPTPP from a regional grouping to a global one.

This is the context in which we should evaluate the UK’s accession to CPTPP. For the first time, a major G7 country has chosen to accede to a regional grouping, not because it is part of that region, but because CPTPP is the most advanced and deeply liberalising agreement around based on mutual recognition, equivalence and adequacy.

Increasingly, countries see the CPTPP as the alternative liberalising framework to the World Trade Organisation, which maximises regulatory competition.

It’s no exaggeration to say that CPTPP+UK is an equivalent economic power to the EU-28-UK. If our involvement ultimately leads to the US rejoining CPTPP, then it would become a grouping that takes in about half the entire global economy.

At that point it can really start to determine the way the world trade system operates. 

https://capx.co/the-uk-joining-cptpp-is-a-seismic-moment-for-the-global-trading-system/

 

[pellinore]

Tragic. Membership of the CPTPP will contribute growth to the UK economy of just 0.1%, or £1.8 Billion over the long-term by the governments own figures. It will also expose our markets to imports which are inferior in quality and produced to a lower environmental standard.

In comparison, we have turned away from trade with our nearest trading partners, which is causing a hit to the economy as big as Covid- year after year. (Again, UK governments own OBR figures).

Everyone knows we are playing a waiting game- when the damage to our economy becomes unsustainable, we will change direction again. The next big shock to the UK will be the loss of our car industry, which will cost us 800,000 jobs (the EU and US are slugging it out to see who can attract the most investment for the new generation of non-IC vehicles).

Then we may be able to address the elephant in the room.

 

[Electric Scooter]

32 minutes ago, pellinore said:

Tragic. Membership of the CPTPP will contribute growth to the UK economy of just 0.1%, or £1.8 Billion over the long-term by the governments own figures. It will also expose our markets to imports which are inferior in quality and produced to a lower environmental standard.

In comparison, we have turned away from trade with our nearest trading partners, which is causing a hit to the economy as big as Covid- year after year. (Again, UK governments own OBR figures).

Everyone knows we are playing a waiting game- when the damage to our economy becomes unsustainable, we will change direction again. The next big shock to the UK will be the loss of our car industry, which will cost us 800,000 jobs (the EU and US are slugging it out to see who can attract the most investment for the new generation of non-IC vehicles).

Then we may be able to address the elephant in the room.

 

Pfff!!!!

You forget the consumer paying less.

[pellinore]

7 hours ago, Cookie Monster said:

Pfff!!!!

You forget the consumer paying less.

Consumers aren't stupid. They can see that every single Brexit promise has not come true, in fact they can see the exact opposite has happened. No control of our borders, no reduction in immigration, no cheaper prices, no increase in sovereignty, no "exact same benefits". 

It is no less maddening, though very much more wearying, to have to listen to the actual government trumpeting the great triumph of some new trade deal with a nation or nations far away, and just sort of hoping the people are stupid enough to not very clearly see that if this is such a great idea, then making trade harder with the enormous and enormously wealthy free-trade zone on our doorstep is clearly a stupid idea.

Voices: The UK has joined a trade bloc because there’s ‘strength in numbers’ – remind you of anything? (msn.com)

Edited April 1 by pellinore

[Electric Scooter]

4 hours ago, pellinore said:

Consumers aren't stupid. They can see that every single Brexit promise has not come true, in fact they can see the exact opposite has happened. No control of our borders, no reduction in immigration, no cheaper prices, no increase in sovereignty, no "exact same benefits". 

It is no less maddening, though very much more wearying, to have to listen to the actual government trumpeting the great triumph of some new trade deal with a nation or nations far away, and just sort of hoping the people are stupid enough to not very clearly see that if this is such a great idea, then making trade harder with the enormous and enormously wealthy free-trade zone on our doorstep is clearly a stupid idea.

Voices: The UK has joined a trade bloc because there’s ‘strength in numbers’ – remind you of anything? (msn.com)

You`re living in a make believe world.

What happens when we enter a market like the CPTPP is non-British organisations in that block with a cost or technological or quality advantage, boom. They will outcompete any British organisations that do the same thing and replace them. That is good for the British consumer, they get cheaper and better products.

Liberalised market economies are self-regulating. What happens when the new competition sends some of our firms bust is unemployment increases, inflation drops, and so do wages. That attracts investment and pushes them back up as new products which British firms can be a leader in our found.

The CPTPP is very good for the consumer, minimally beneficial to our economy in the short-term, but in the long-term makes us stronger as more of our organisations will develop a comparative advantage. There are also diplomatic benefits by aligning the foreign policies of other members with British interests. After all, you dont behave in a way that negatively impacts a major trading partner.

[L.A.T.1961]

16 hours ago, pellinore said:

Tragic. Membership of the CPTPP will contribute growth to the UK economy of just 0.1%, or £1.8 Billion over the long-term by the governments own figures. It will also expose our markets to imports which are inferior in quality and produced to a lower environmental standard.

In comparison, we have turned away from trade with our nearest trading partners, which is causing a hit to the economy as big as Covid- year after year. (Again, UK governments own OBR figures).

Everyone knows we are playing a waiting game- when the damage to our economy becomes unsustainable, we will change direction again. The next big shock to the UK will be the loss of our car industry, which will cost us 800,000 jobs (the EU and US are slugging it out to see who can attract the most investment for the new generation of non-IC vehicles).

Then we may be able to address the elephant in the room.

 

If only the EU had not turned into a political talking shop and remained focused on applying reasonable equivalency based rules, there would never have been a need to leave. I am sure the CPTPP group of nations will not make the same mistake and attempt a power grab. 

Its interesting to see the wider geopolitical ramifications from the UK joining.

China wants a seat at this table and now the UK has a say on if, or how, they join.

The US may also want a seat, as we know they have decided to slow to a standstill the US/UK trade deal under Biden.

The US, even under a Biden administration, might think giving the UK a bi lateral trade deal to facilitate the UK agreeing to its membership of CPTPP is worth the change of heart 

Then there is any future membership desire of the EU, it might take a rethink on access to EU financial markets to grease that particular UK acceptance of EU membership 

The problem with looking at the bare .02% trade benefit is it is far too two dimensional, just like those who can see no further than this statistic.  

 

Why Britain’s Pacific trade deal is about more than just trade

https://www.politico.eu/article/uk-accession-to-cptpp-pacific-trade-group-beer-whisky-asean-aukus/