EXCLUSIVE : Biggest-ever UK free trade deal set to start by the end of this year

Peru just gave the UK its best present since that country’s export to the UK of Paddington Bear

Montage © Facts4EU.Org 2024, with the greatest of respect to the memory of HM Queen Elizabeth II, R.I.P.

Why is Sir Keir Starmer’s Government sitting behind a wall of silence on this great news?

As of Thursday last week, the UK has the final necessary national ratification formally to join one of the world’s largest trading blocs. With the UK, this bloc will shortly contain 590 million consumers. That’s 31% more than the EU.

Note : The deal the UK has with the EU, called the 'Trade and Cooperation Agreement' is not a normal free trade agreement, as it required the effective annexation of part of the United Kingdom's sovereign territory : Northern Ireland. In addition it placed a border down the Irish Sea. Northern Ireland remains subject to EU laws over which neither its people nor the UK Government have any vote or say. This is not a free trade agreement as the term is recognised around the world.

On Thursday the Peruvian Government ratified the accession of the UK to membership of the ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership’ (CPTPP). The UK needed six of the 11 member countries of this massive trading bloc to ratify their previously signed agreement for the UK to become the first non-founder member. Peru made history by being the sixth member country to do so.

Credit: Peruvian government 2024 - click to enlarge

A major Brexit Facts4EU.Org series
on Brexit Britain's biggest ever free trade deal

PART I (This report)

What exactly is the CPTPP and why is it important?
With the UK, this bloc will contain 590 million consumers – 31.3% more than the EU
Why does there appear to be a wall of silence about this great Brexit news from the UK Government?
What are UK businesses and consumers set to gain from this epic UK trade deal?

PART II - The 5 major benefits of the CPTPP deal, to correct Whitehall and Rejoiner hostility and ignorance

PART III - Brexit Britain’s biggest-ever free trade deal – What’s the truth about how big the CPTPP is?

PART IV - Some ‘home truths’ about our great, global trading nation from someone who should know

PART V - The story behind how this astonishing Brexit news came about

Peru’s ratification of the UK’s accession to the ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership’ (CPTPP) on Thursday means that the UK has passed the hurdle of having a majority (six) of the member countries ratifying its accession to become part of one of the world’s largest trading blocs. Unreported by the BBC, the UK’s economy will be given a boost by this news, as it means the UK will now be embarking on the largest free trade deal in its history.

What precisely is the CPTPP and why is it important?

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, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Quoting the Dept for Business and Trade: ”CPTPP is one of the largest free trade areas in the world… This Free Trade Agreement (FTA) spans the Asia-Pacific and the Americas and includes some of the world’s largest current and future economies. CPTPP will also provide the UK with a stepping stone to trade with the wider strategically important Indo-Pacific. It is expansionary at its heart. As new members join, the UK will be able to benefit from its expansion and increased opportunities to trade.”

- DBT ‘Impact Assessment’, 13 Aug 2024. (Ahead of this latest news.)

United Kingdom is first non-founder member to be allowed to join
No free movement, no CPTPP laws imposed on the UK, no political union
And the deal encompasses services – usually relegated under the EU which focused on goods
Unlike the EU this is a trading bloc, not a wannabe superstate
99% of UK goods exports to CPTPP to be eligible for zero tariffs
UK businesses will be given unparalleled access to a market of over 522 million extra people
UK Consumers will benefit because of the removal of import tariffs from CPTPP imported goods
None of this would have been possible without Brexit

Commenting on our reports last year, Liz Truss told us :-

"As Trade Secretary, I made our formal application to join CPTPP two years ago. I am delighted negotiations are completed, deepening UK access to some of the world's fastest-growing economies. This is Global Britain in action and an important counterweight to those who seek to undermine our values… This is a vital development as we seek to boost UK exports to new markets and deliver additional economic growth."
- The Rt Hon Liz Truss MP, former International Trade Secretary, former PM, 31 Mar 2023

With the UK, this bloc will contain 590 million consumers – 31.3% more than the EU

News blackout from the new Labour Government – possibly because the deal was done under the Conservatives?

Last week the news started filtering out to us from South America that Peru was set to become the sixth CPTPP member to ratify its agreement for the UK to join the enormous trading bloc, and the UK Embassy there was clearly delighted. The sixth ratification is important because it now means the UK has the required six member majority of the eleven CPTPP countries who have ratified. Ratifications from the remaining five CPTPP members are all expected very soon, but it is Peru that has now made the decisive move.

Extraordinarily given the importance, Sir Keir Starmer failed to send any Government Minister to Peru from the UK, and it fell to the UK Ambassador to attend on behalf of the Government. If the Peruvians felt the slight, they were gracious enough not to show it. Perhaps, though, the absence of the customary Union Jack from the official photo (below) hints at their true feelings.

Here is what the Peruvian government said last week

“The United Kingdom was waiting for the ratification of the sixth member of the CPTPP so that this agreement could enter into force by the end of this year. We are very pleased that Peru has been the member who ultimately helped achieve this milestone.”
- Elizabeth Galdo Marín, Minister for Foreign Trade and Tourism, 22 Aug 2024

And here is what the UK’s Ambassador to Peru said :-

“We will now see how trade between the United Kingdom and Peru continues to increase. The CPTPP is a modern, very ambitious agreement that will open doors to generate trade with value chains with all its members.”
- United Kingdom Ambassador to Peru, Gavin Cook, 22 Aug 2024

Unfortunately there was no announcement on the UK Government website about this momentous news – and the BBC are nowhere to be seen on this important story. Fortunately the Facts4EU.Org team monitors world news and has sources in many parts of the world. We are proud to bring the full story to our readers.

Ratifications to date

The six countries which have now ratified this deal are Japan, Singapore, Chile, New Zealand, Vietnam, and Peru. The five who have signed the deal but have yet to ratify it formally, as a result of their parliamentary or other procedures, are Australia, Brunei, Canada, Malaysia and Mexico.

And finally, before Rejoiners start...

Yes, the UK already has free trade deals with nine out of the 11 CPTPP members, but these do not come close to the benefits of the terms of the new free trade deal with the CPTPP, which we will explain in Part II of this report.

Observations

Here's why this is big news

Cynics will doubtless ask why this is such big news, given that the actual trade deal has not yet entered force. After all, everyone was expecting this deal to happen.

The reason is simple. The UK's accession to the CPTPP is now locked in, after Peru became the sixth member to ratify it on Thursday last week. To explain further why this is so important, the EU's abortive attempts at doing trade deals help to illuminate this by example.

The EU Commission has a habit of 'pre-announcing' trade deals to much fanfare - generally many times and over many months or even years - only for these to unravel prior to implementation. A case in point is the EU-Mercosur trade deal. The EU started negotiating just over 25 years ago. Since then they have produced many positive announcements, including the grand signing five years ago. Heralded many times by the EU Commission as a success, it was derailed completely at the last minute due to a change in government in one of the Mercosur countries, who then refused to ratify it. On top of this, some EU countries (eg France) are now uncomfortable with it. The result is now a complete impasse.

In the case of the Mercosur deal, all members are required to approve a new member joining. In the case of the CPTPP deal, this is not so. There is no sole veto - it takes a majority (just six out of the 11 members) to ratify. The Peruvian government explained last week : "The United Kingdom Protocol of Accession will enter into force 60 days after 15 months from the date of the Signing of the Protocol (July 2023)." (In fact there are some other conditions which the Peruvian Government doesn't mention, but the key target of six members ratifying has now been achieved.)

The UK's Protocol with all member countries was signed on 16 July last year (2023). This will make it one of the fastest free trade deals in modern history.

How much is this deal worth?

The simple answer is : "Far more than Whitehall wants to admit, as this is a Brexit triumph." We will explain why, in Part II of this special report.

And finally, as we are celebrating, back to her late Majesty

For any readers confused about our opening image of her late Majesty Queen Elizabeth II and Paddington Bear, we should explain that the fictional character of Paddington Bear arrived in the UK from Peru. In the Platinum Jubilee celebrations, Her Majesty allowed the producers of the TV spectacular to give a rare glimpse of the humourous side of her nature. Courtesy of SBS News Australia, here is the video.

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[ Sources: Source in Latin America | ONS | UN population stats | Peruvian Government Trade Dept ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Tues 27 Aug 2024

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Reader Comments 14

1. Ann Marie , Tuesday, August 27, 2024, 01:33:

Wonderful news, thanks Facts for EU. Does this now mean it will be far more difficult for Stalin Starmer to take us back into the EU. I surely hope so!

2. Sparky , Tuesday, August 27, 2024, 05:19:

Quote from Chatham House "UK already has bilateral free trade agreements (FTAs) with nine of the eleven current CPTPP members, which limits potential economic effects."
.
Meanwhile, Industry Body Make UK has renewed calls on the government to urgently draft an industrial strategy that will bring in investment and fix the “terrible” damage caused by the Brexit deal.

3. Old Albion , Tuesday, August 27, 2024, 06:42:

The Labour Gov. have an industrial strategy. It's called Ed Milliband's Green mania and will eradicate the last knockings of UK industry currently hanging on by it's fingertips.

4. Ashley Great Britain , Tuesday, August 27, 2024, 07:30:

This is excellent news. Very exciting to think of the prospects. Uk businesses will have the opportunity to import a vast array of new quality, lower cost products for UK customers. Links and ties will quickly be forged and UK markets such as insurance services will suddenly have a wealth of eager new customers.
This is a momentous occasion.
-
Its very disheartening that the UK Gov and blob media are silent on this. Why on earth can't they get their heads out of the clouds and embrace Britain.
We're all sick of being run by non patriotic weirdos who seemingly care very little about the UK. It's a real shame we don't have proud strong leaders working for the people anymore. What can be said is
Thankfully rejoining the EU is consigned to the church yard.

5. Carlo , Tuesday, August 27, 2024, 07:31:

Very happy to hear this news.
The dishonesty of the anti-Brexit camp in minimising the potential benefits and the geopolitical impact of this shrewed deal is very saddening.
It points to evident political immaturity, but is also caused by a total lack of national pride which manifests itself in many other ways, including rejection of historical achievements and subservience to international "law".
In other words, global Britain offends the globalists; which would seem ironic if it wasn't that modern globalism is not about the healthy global trade and interactions pioneered by Britain, but about a drive to undo democracy by handing over power to unaccountable international organisations and superstates.

6. Robert Mcdonald , Tuesday, August 27, 2024, 08:25:

It always amuses me when the remaining brexit haters denounce the many positives of brexit as terrible etc, clearly in the hope that the louder and more dreadful their moaning is then maybe some people will take them seriously.

7. NH , Tuesday, August 27, 2024, 09:38:

2. Sparky, "Make UK has renewed calls on the government"
Make UK recently revised their UK manufacturing growth forecast from 0.8% to 1.2% for 2024. In addition the UK PMI (Purchase Mangers Index) hit a 2 year record high in July showing strong growth.
.
In Germany the PMI recently slipped below 50, meaning recession, to 48.5. In France their manufacturing activity has recently dropped to an 8 month low. France's overall PMI is slightly stronger but only because it includes the spending on the Olympics.
.
Remainer-Rejoiners seem to fear new trade deals, which is why they have tried to block the CPTPP at every opportunity. The CPTPP trade deal seems to suit the UK economy and, if we get Government support, we will be able to replace "fear stories" and false information with actual facts.

8. Gazzablack , Tuesday, August 27, 2024, 09:53:

2, sparkless
.
Yeah, about the nine current agreements
.
Some of those deals are not full FTA's , while others were negotiated by the EU, and so benefited EU businesses generally rather than the UK specifically.
The trade deals negotiated by the EU with CPTPP members are not so expansive as the intra CPTPP, especially when it comes to agricultural goods, consequently Canada and Mexico have been trying to improve their trade deals with the UK since we left the EU and Japan has already done so.
.
It's worth remembering tnere are a number of countries intending to, or expressing an interest in joining the CPTPP., Including Uruguay, Taiwan, South Korea and Thailand.
So in the next few years the eleven could become the thirteen, or fifteen, or more.
.
What Brexit damage are we talking about Hiroo?
Is it the damage that has seen the UK grow faster than the EU?

9. Sparky , Tuesday, August 27, 2024, 15:33:

6 RM. It amuses me when Brexitears push poor economic benefits when they know that Brexit was won because of immigration.
.
8 G. CPTPP is a small compensation for Johnsons promises of a trade deal with the USA.
.
New book out this week, an account of Liz Truss time as PM entitled "She Came, She Saw, She Crashed".

10. Anne Marie , Tuesday, August 27, 2024, 17:07:

Sparkless, my, my, you are such a poor deluded creature, how do you live with yourself, I feel so sorry for you, always in the depths even if they are myths!

14 comments, page 1 of 2

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