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TPP: Could UK really join Pacific trade group? | TPP: Could UK really join Pacific trade group? |
(about 2 hours later) | |
Donald Trump abandoned a Pacific trade group not long after getting to the White House. But could the UK now be eyeing it up? | Donald Trump abandoned a Pacific trade group not long after getting to the White House. But could the UK now be eyeing it up? |
Britain is reportedly exploring joining the Trans Pacific-Partnership (TPP), as part of efforts to map out its trade future after Brexit. | Britain is reportedly exploring joining the Trans Pacific-Partnership (TPP), as part of efforts to map out its trade future after Brexit. |
Ministers have held informal talks on joining the Trans-Pacific Partnership, according to the Financial Times. | Ministers have held informal talks on joining the Trans-Pacific Partnership, according to the Financial Times. |
And International Trade Secretary Liam Fox has not ruled out the UK joining the multi-nation Pacific free trade zone after Brexit. | |
Britain would be the first member of the trade agreement to not border the Pacific Ocean or the South China Sea. | Britain would be the first member of the trade agreement to not border the Pacific Ocean or the South China Sea. |
Mr Fox said the UK wanted to see how the TPP evolved after America's exit from it before making such a move. | Mr Fox said the UK wanted to see how the TPP evolved after America's exit from it before making such a move. |
However, even mention of Britain entering negotiations has been met with scepticism from some trade experts who argue it's unlikely to lead to a deal - and even if it did happen, the UK would not have much clout. | However, even mention of Britain entering negotiations has been met with scepticism from some trade experts who argue it's unlikely to lead to a deal - and even if it did happen, the UK would not have much clout. |
What is the TPP? | What is the TPP? |
The TPP pact is designed to deepen economic ties between member nations, by slashing tariffs and fostering trade to boost growth. | |
The agreement was designed so that it could eventually create a new single market not dissimilar to the EU. | |
President Trump cast doubt over the future of the TPP when he honoured a campaign pledge and pulled out of the trade pact last year. | President Trump cast doubt over the future of the TPP when he honoured a campaign pledge and pulled out of the trade pact last year. |
But the remaining 11 members - Canada, Australia, Chile, New Zealand, Brunei, Singapore, Japan, Malaysia, Mexico, Peru and Vietnam - have pressed on and are working towards an agreement. | But the remaining 11 members - Canada, Australia, Chile, New Zealand, Brunei, Singapore, Japan, Malaysia, Mexico, Peru and Vietnam - have pressed on and are working towards an agreement. |
What would be in it for the UK? | What would be in it for the UK? |
Put simply, fresh trade opportunities after Brexit. | Put simply, fresh trade opportunities after Brexit. |
For supporters of leaving the EU, the opportunity to do new trade deals was one of the great attractions. | For supporters of leaving the EU, the opportunity to do new trade deals was one of the great attractions. |
The members of the TPP currently account for about 8% of British exports. The biggest single destination for UK goods and services in that group is Japan. | |
"Easier access would certainly be worth having for many British exporters," says BBC economics correspondent Andrew Walker. | "Easier access would certainly be worth having for many British exporters," says BBC economics correspondent Andrew Walker. |
But the very possibility of these talks has drawn criticism. | |
Labour MP and Open Britain supporter Chuka Umunna says new trade deals "would not come close to making up for lost trade with the EU after a hard Brexit". | Labour MP and Open Britain supporter Chuka Umunna says new trade deals "would not come close to making up for lost trade with the EU after a hard Brexit". |
And if the UK did join the TPP, it risks holding "little leverage" in talks, according to Aaron Connelly, research fellow at the Lowy Institute for International Policy. | And if the UK did join the TPP, it risks holding "little leverage" in talks, according to Aaron Connelly, research fellow at the Lowy Institute for International Policy. |
He says nations are highly unlikely to reopen negotiations on sensitive matters, simply to accommodate the UK. | He says nations are highly unlikely to reopen negotiations on sensitive matters, simply to accommodate the UK. |
Given the urgency to seal a deal, Mr Connelly warns the UK would be a "price taker" on the terms of the pact, particularly in areas like pharmaceuticals, state-owned enterprises, labour and the environment. | Given the urgency to seal a deal, Mr Connelly warns the UK would be a "price taker" on the terms of the pact, particularly in areas like pharmaceuticals, state-owned enterprises, labour and the environment. |
"If Brexit was about symbolically taking back control in these areas, then joining the TPP would do little to accomplish that," he added. | "If Brexit was about symbolically taking back control in these areas, then joining the TPP would do little to accomplish that," he added. |
So is a deal likely? | So is a deal likely? |
A Department for International Trade spokesman says it is "early days" in the UK's quest to sign new deals. | A Department for International Trade spokesman says it is "early days" in the UK's quest to sign new deals. |
"We have set up 14 trade 'working groups' across 21 countries to explore the best ways of progressing our trade and investment relationships across the world." | |
The government was "not excluding future talks" on trade agreements with group of countries. | |
If included, the UK would expand the reach of the TPP to countries beyond those that border the Pacific Ocean. | If included, the UK would expand the reach of the TPP to countries beyond those that border the Pacific Ocean. |
"It had always been the idea that the TPP would expand," says James Crabtree, associate professor of practice at the Lee Kuan Yew School of Public Policy in Singapore. | |
But he argues practical constraints make the UK's inclusion in the pact unlikely. | But he argues practical constraints make the UK's inclusion in the pact unlikely. |
"The problem is there are all sorts of barriers to this happening," Mr Crabtree says. | "The problem is there are all sorts of barriers to this happening," Mr Crabtree says. |
Those include the TPP having not yet been ratified and the considerable uncertainty over the UK's final deal with the EU. | Those include the TPP having not yet been ratified and the considerable uncertainty over the UK's final deal with the EU. |
"It all sounds like a fairly desperate attempt by the British government to show that it has a vision for what happens after Brexit. | "It all sounds like a fairly desperate attempt by the British government to show that it has a vision for what happens after Brexit. |
"They don't have many options, and trying to get into this symbolises that Britain is serious about trying to build trade relationships." | "They don't have many options, and trying to get into this symbolises that Britain is serious about trying to build trade relationships." |