Britain strikes a major post-Brexit deal, enters the Indo-Pacific trade bloc

In a historic move on the 31st of March, Britain announced its entry into the Indo-Pacific Trade Bloc.

The UK government is ready to become the 12th and first European member of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. This will open the doors of a rich trading region with an £11 trillion ($13.6 trillion) GDP for British businesses and organizations. The deal is expected to be formalized by the end of 2023 following the approvals from Parliament and 11 member states.

Striking the biggest post-Brexit trade deal, the UK is presently taking pride in putting the country at the center stage of blooming Pacific economies.

"We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms. British businesses will now enjoy unparalleled access to markets from Europe to the South Pacific.", said Rishi Sunak, Prime Minister of the UK.

About the Indo-Pacific Trade Bloc

The CPTPP endorses a massive trade bloc spanning over countries like Canada, Mexico, Japan, Australia, Vietnam, Singapore, and Malaysia, among others. This trade agreement is a renewed version of the scraped Trans-Pacific Partnership formed by the US government.

What does this deal mean for Britain?

• Expected tariff reduction on export items including food, drink, and cars.
• Access to a vast market with over 500 million people and enormous trading opportunities.
• Estimated growth of the global GDP by 15% following the deal.
• Estimated growth of the UK economy by £1.8 billion or by 0.08% with impact visible in the longer run.
• Estimated wage rise by £800 million which is higher than the 2019 levels.

Experts are calling this trade deal a progressive approach towards the global markets to bolster the UK economy and pave a smoother road for future trading initiatives. There is a lot more to speculate over the actual outcomes and growth prospects expected to emerge from this deal.

Trade agreements play a crucial role in the valuation and compliance requirements for imports and exports alike. You can stay updated with all the regulatory changes with the help of Trademo Compliance.