While the CPTPP, the Comprehensive and Progressive Trans-Pacific Partnership Agreement, officially entered into force in Chile on 21 February, the United Kingdom is awaiting a response to its application for membership.
After Malaysia in November 2022 (cf.CPTPP Agreement: Malaysia ratifies the Trans-Pacific Partnership TreatyIt is Chile's turn to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which also includes Australia, Canada, Japan, Mexico, New Zealand, Singapore, Vietnam, Peru and Brunei, the latter being the only signatory whose ratification process is still under way. The CPTPP encompasses the full range of modern trade agreements, including market access for goods and services, procurement disciplines, temporary admission and investment protection.
With a strong economy, the country with the highest per capita GDP in South America, Chile, is likely to benefit its partners from its highly sought-after lithium resources as the world moves to electric vehicles.
Several countries including the United Kingdom (cf.United Kingdom: application for accession to the Trans-Pacific Treaty), China (cf.China: Application for membership of the Trans-Pacific Partnership Agreement), Ecuador, Costa Rica and Uruguay expressed their wish to join the CPTPP. The accession process called for in 2021 by London is currently under review and could be answered in 2023, but the negotiations seem to be stalled by Canada, which requires the United Kingdom to open its beef market to CPTPP members, which the United Kingdom does not seem willing to do.
London's accession could increase the economic weight of the trading bloc, bringing the CPTPP's GDP to £11,000 billion, i.e.12-15 % of world GDP. It would allow the British to benefit from reduced tariffs on more than 99% of goods in a market of nearly 500 million customers. Because of the distance between London and the Pacific regions, the supply chain may pose practical problems. The strength of the United Kingdom in strengthening ties with the Pacific region remains undoubtedly the service sector.
Source(s): OTHER ACTS International
Editor(s): C. Bedouin