With CPTPP, Great Britain appears again as an economic power

The announcement that Britain will join the comprehensive and progressive trans pacific partnership is a great success. It should not be underestimated. This will open the free trade between the United Kingdom and 11 economies in the Indopazacific region. It means free trade not only with Australia and New Zealand, but also with countries such as Japan, Canada and Mexico as well as Singapore and Vietnam. Over time, it will prove to be transformative for the British economy.

These countries have a population of 500 million and a GDP of $ 9 trillion. Japan is the third largest economy in the world. Of the others, many rapidly growing and advanced economies are, and then there are the more traditional, more stable, developed economies of Australia, Canada and Singapore.

The United Kingdom will be in a unique position. It already has a free trade agreement with the EU, which is not quite as liberal as a member of the internal market, but still grants the United Kingdom of customs and contingent-free access to the EU market and enables imports from the United Kingdom. No country has freer trade with the EU as the United Kingdom. Added to this is the free trade with 500 million people in the Indopazacifik, and Great Britain has one of the best trade agreements from all countries on earth.

At the moment, the United Kingdom's trade with the CPTP countries only makes 7.8 percent of its total trade. Critics may consider this to be unimportant, but remember that these countries are among the most economically dynamic in the world. It is estimated that 65 percent of consumers in the global middle class will live in the Indopazacifik region by 2030. So for the no, who think that the CPTPP could not be important for the British economy, I would like to remind you that commercial growth with these 11 economies is already around 8 percent a year.

As soon as commercial barriers have been torn down, you can expect that the trade will grow much faster. And although we have no idea how well British exporters will do in these markets in the Indopazificif, opportunities have now opened up like never before. Admission to the CPTPP is not only an advantage at short notice, but also binds the British economy into the most economically dynamic region in the world. It is a very serious investment in the future.

In addition to the trade statistics, it is important to remember that British service providers are already deeply integrated into the Indopazific region. British service providers exported services worth almost 30 billion to CPTPP members in 2019.

Of course, membership in the CPTPP also has geopolitical importance. While the return of the British armed forces to the Indopazific region is important last year, joining the CPTPP is the most important step that the United Kingdom has taken as part of its turn to the Indopazacifik. Some have argued that the inclination is unaffordable and that the United Kingdom should concentrate on its own neighborhood. I think this vision is wrong.

By working with the Indopazificifik, Great Britain makes a serious contribution to the balance of the growing power, both in the region and beyond. By joining the CPTPP, Great Britain will have the opportunity to reduce its dependence on supply chains from China. It will be possible to build new supply chains with other countries in the Asian-Pacific area. On the high-tech page, the construction of other connections to Japan is very promising. This is already an extremely important economic relationship for the United Kingdom, and it makes sense to further expand it.

But with regard to cheaper economies, the construction of supply chain networks with a country like Vietnam or Mexico means a lower dependency on China.

The United Kingdom is now becoming an important partner for other liberal democracies in the Indopazacifik, as a country that contributes to compensating for China's growing power, and as a nation that takes the economic opportunities of the rapidest growing countries in the world.

All of this would not have been possible if the United Kingdom had remained in the EU. And although we will all accept that it has some disadvantages to be outside the EU, there are also very considerable opportunities when the British government is ready to use it. In the event of accession to the CPTPP and the fulfillment of the membership conditions, the government has shown a real determination to make the best of the world after Brexit. The long -term consequences should be very advantageous.

Alexander Downer is a former Australian Foreign Minister and High Commissioner of the United Kingdom