Brexit UK now two steps closer to joining trade bloc to overtake EU
The great Brexit trade news just keeps on coming
© Brexit Facts4EU.Org 2020
Globe-trotting Trade Sec Truss secures two more significant post-Brexit deals
Brexit Britain just can’t stop coming out with great trade news. Another £23 billion of trade with Singapore and Vietnam – sorted. Fresh on the heels of our report on Wednesday showing that the UK now has trading arrangements in place with more than 100 countries, the Secretary of State for the Dept for International Trade announced yesterday that she has signed a trade deal with Singapore and today she will be signing with Vietnam.
Here is what International Trade Secretary, Liz Truss, had to say:
“Both these agreements are vital for the UK’s future as an independent trading nation. Not only do they lock in billions of pounds worth of trade, they also pave the way for new digital partnerships and joining the Trans-Pacific Partnership. This will play to the UK’s strengths, as we become a hub for tech and digital trade with influence far beyond our shores, defining our role in the world for decades to come.
“This is an important part of our vision for a Global Britain that sits at the centre of a network of deals with dynamic nations across Asia Pacific and the Americas as a global hub for services and technology trade.”
- Liz Truss, UK International Trade Secretary, Singapore, 10 Dec 2020
On the road to joining the most populous trading bloc in the World
The agreements with Singapore and Vietnam mark another step towards the UK joining the Trans-Pacific Partnership (CPTPP). Both countries are members and both have said publicly that we would like the UK to join. This trading bloc already has 14% more consumers than the EU.
Here is what the Singaporean Trade Minister Chan Chun Sing said yesterday: "As vice-chair of the CPTPP Commission, Singapore will work with the chair and other CPTPP members to form an Accession Working Group for the UK as expeditiously as possible." It is hoped that major progress will be made early next year.
Brexit Facts4EU.Org Summary
The CPTPP compared to the EU27
- The population of the CPTPP countries is 508 million
- The population of the EU27 is 445 million
- When the UK joins the CPTPP, the combined population will rise to 575 million
- That will be 29% more than that of the EU27
© Brexit Facts4EU.Org - click to enlarge
What is the CPTPP?
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Seven of these countries are already parties to the agreement, with the others going through domestic ratification processes.
Brexit Facts4EU.Org analysed the economic opportunity for the United Kingdom. Our research shows :-
- The 11 current signatories accounted for 12.9% of global GDP in 2019
- This would rise to 16.2% if the UK were to join
- If South Korea joins, the CPTPP would have 18.0% of global GDP
- The EU27's share is 17.9% and falling
As can be seen above, if the UK joins, the CPTPP will be snapping at the heels of the EU in terms of share of the global economy. A key factor to bear in mind is that many of the countries in the CPTPP have much higher growth rates than the EU27. In addition, several more countries are in the wings.
The United Kingdom formally declared its interest in 2018, and this has already been welcomed by several members. The other countries which have made formal announcements include China, Colombia, Indonesia, Philippines, South Korea, Taiwan, and Thailand. If the UK and, say, South Korea joined, the CPTTP’s combined economies would exceed those of the EU27.
What’s the current state of play for Brexit Britain’s trading relationships?
“In under two years we have agreed trade deals with 57 countries that account for £193bn of UK bilateral trade. This is unprecedented. No other country has ever negotiated so many trade deals simultaneously. The Government’s ambition is to secure free trade agreements with countries that cover 80% of UK trade within three years.”
- Department for International Trade, 10 Dec 2020
For more details see our article on Wednesday here.
Observations
These two trade deals with Singapore and Vietnam are yet another blow to Remainers who for years have been talking down their own country.
This latest news brings the number of UK trade deals to 57. Toghether with the continuation of trade arrangements with another 47 developing countries, this brings the overall tally of countries with whom trading arrangements are in place to 104.
The persistent narrative from the Remain establishment over the last few years has been that somehow no-one would want to trade with the world’s fifth-largest economy. Well, not only have countries around the world been lining up, a great number have been putting their signatures on official agreements.
It is perfectly true that many of these deals roll over existing arrangements, but they also have improvements which are aligned to the UK’s economic interests. And significantly these latest two deals make the accession of the UK to the Trans-Pacific trading bloc even more likely, as both the signatories are also members of that club.
And Boris?
Today we have nothing to add to the media speculation about the state of play in the UK-EU trade talks. Tomorrow we hope to publish a summary of where we are with the EU and what we believe needs to be done.
In the meantime we thought we should report on yet more good news for Brexit Britain.
Going forward
We continue to research and publish reassuring reports based on the EU’s own data and on data such as that above from the UN and IMF, debunking the Remainer myths and urging heads to be held high. The country was right in 2016 to vote to leave the European Union. The subsequent hostility and bad faith from the EU since that time has shown just how right voters were.
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[ Sources: UK Department for International Trade | CPTPP Commission | UN population data | IMF GDP data ] Politicians and journalists can contact us for details, as ever.
Brexit Facts4EU.Org, Fri 11 Dec 2020
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