The UK is understood to be exploring the possibility of joining a trans-Pacific trade bloc after it leaves the European Union (EU), as part of plans to find alternative export markets.
According to the Financial Times, Britain has held informal talks about joining a flagship Pacific trade group – a move that, if successful, would see the UK become the first member of the Trans-Pacific Partnership (TPP) that does not border the Pacific Ocean or the South China Sea.
Liam Fox, Secretary of State for International Trade, is said to be developing the proposal, which could be an alternative to signing separate, bilateral agreements with TPP countries.
The trade pact was last year renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after the US withdrew from the deal last year to reflect a focus on inclusive growth. It is expected that after each country has cleared the necessary domestic procedures, the agreement will take effect by 2019.
TPP 11 nations move trade pact forward with new name
While based on the TPP framework, around 20 provisions have been suspended if Washington stays out of the pact, 11 of which are related to intellectual property. And a revision of the original TPP text means the CPTPP can come into force 60 days after at least six signatories complete domestic procedures.
All 11 TPP countries combined, however, which include Mexico, Australia and Japan, accounted for less than 8% of UK goods exported last year, while in comparison, Germany alone accounted for 11%, according to the FT.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUK trade minister Greg Hands told the publication there was no geographical restriction on Britain joining TPP. “Nothing is excluded in all of this. With these kind of plurilateral relationships, there doesn’t have to be any geographical restriction.”
The UK, however, would have to wait until TPP itself has been revised, and until it has agreed its post-Brexit relationship with the EU before it could join the deal.
The reports come as Fox travels to China for a three-day visit aimed at boosting trade. He will visit Beijing and Shenzhen to meet with Chinese ministers and business leaders.
