The United Kingdom has officially initiated the process to be part of one of the largest free trade zones in the world, with the aim of establishing itself at the center of emerging economies in the Pacific. And the promotion of employment throughout its territory. This is its accession to a trade agreement between 11 countries that covers 500 million people and accounts for 13 percent of global GDP in 2019.
As UK International Trade Secretary Liz Truss reported, on 1 February 2021, she spoke with ministers in Japan and New Zealand to request the UK’s future accession to the Trans-Pacific Inclusive and Progressive Association (TIPAT). It will be the first official step toward accession before negotiations begin this year.
The UK presence in TIPAT appreciates improvements in trade with countries listed in the Association, among them Mexico, Chile and Peru, through the opening of new markets and opportunities for UK companies, While encouraging more domestic investment and strengthening British relations with the Indo-Pacific and the Americas.
The UK’s membership in TIPAT is a key part of the government’s plan to position the nation at the center of a network of modern free trade agreements that boost jobs and economic growth.
“Applying to be the first new country to join TIPAT demonstrates our ambition to do business in the best conditions with our friends and partners around the world and to be passionate advocates for global free trade,” UK Prime Minister Boris Johnson said.
For her part, Minister of International Trade Lise Truss confirmed her interest in expanding strategic economic and trade potential: “TIPAT is a unique club for rapidly growing countries that trade together, and our joining will ensure greater business and investment opportunities for all members. It will place the UK at the center of a dynamic free trade area. ”
It will be at the end of next April when negotiations begin, so the UK should announce its negotiating objectives, analyze the scope and respond to the consultation before that deadline.
Currently this association consists of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.It is estimated that with the UK’s integration, the global GDP it accounts for could increase by 3 per cent, according to International Trade.