The EU has said it wants to reach a deal by October so that it can be approved by the European Parliament before the post-Brexit transition period expires.
The transition period ends on December 31.
Brexit: UK membership in CPTPP could create high-level ‘highest trading bloc’
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Britain will negotiate with the EU on World Trade Organization (WTO) rules if a deal is not reached by then.
This means that most British products would be subject to tariffs until a free trade agreement was ready to be concluded.
Reaching a deal is one of the few pressing issues that Prime Minister Boris Johnson’s office is currently working on; Yet his government is also looking further to strike trade deals with countries it previously could not due to its membership in the euro zone.
A business bloc he could join, said Sean King, senior vice president of Park Strategies in New York City and a researcher affiliated with the Liu Institute at the University of Notre Dame, the CPTPP.
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If the UK does join, he said the US – which dropped out in 2017 – might be inclined to reconsider joining; thus potentially creating the “highest of high level trade agreements”.
He explained: “If the UK and US joined the trading bloc, it would become one of the biggest economic players in the world.
“Before leaving the United States, we represented 40% of the world’s GDP.
“So with the UK that would be a really great force.
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“Right off the bat you would have number one and number three for the largest economies along with the United States and Japan, and then you add Great Britain to that.
“It would really set the standards, it would be the highest of high level trade agreements. ”
The CPTPP currently has eleven members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
US President Donald Trump abandoned what was then known as the Trans-Pacific Partnership (TPP) in 2017.
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He claimed the United States had a bad deal.
Yet Mr King still believes that the membership could be of interest to the United States – regardless of the White House member – if the United Kingdom becomes a twelfth member.
He said, “I still believe the United States will join the CPTPP because it makes sense, especially given this new geopolitical reality that we find ourselves in.
“If Donald Trump wins re-election given his good relationship with Boris Johnson, maybe the UK’s membership in the CPTPP might be enough for Trump to reconsider his exit.
“If he can get some key plans renegotiated, his trade deal with China doesn’t go through, and he too might say ‘listen, I don’t like multilateral deals but we’re in a new world, we’ve got to be creative. . post Covid, China is the real problem here, my good friend Boris says it’s okay, I’ll do it. ”
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For the United States, it would also add the benefit of placing a trade wall between China and CPTPP members, King argued.
On the question of Joe Biden, the Democratic presidential nomination, Mr King said: “I think Biden would be open to bringing Washington closer to the TPP – he won’t admit it now, but I think he would. ”
The CPTPP or TPP was not created specifically to curb China’s economic prowess.
However, it quickly became a bubble in which many member states can trade with confidence without having to make “moral compromises”.
China also has its own trade bloc, called the Regional Comprehensive Economic Partnership (RCEP).
Many members of the RCEP are also members of the CPTPP, which could call into question the potential conflicts of interest between those who occupy both the trading blocs and China.