CPTPP: UK accepted into Indo-Pacific trade bloc in biggest trade deal since Brexit
The UK has been accepted into an Indo-Pacific trade bloc in what the government says is its biggest trade deal since Brexit.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between 11 countries across the Indo-Pacific, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – and now the UK.
The partnership sees the countries open up their markets to one another, reducing trade barriers and tariffs, with the hope of bolstering the economies of its members.
Sunak hails UK joining CPTPP – live politics updates
Trade Secretary Kemi Badenoch said the UK’s accession to the CPTPP was formally confirmed in a telephone call between her and counterparts from the group at 1am BST on Friday.
The UK is the first European country to enter the agreement, and the government claims it will lead to a £1.8bn boost to the economy “in the long run”.
Prime Minister Rishi Sunak said the deal shows “what we can achieve when we unleash the benefits of Brexit”.
While the UK already has trade agreements with most of the CPTPP members, apart from Malaysia, UK officials said it would deepen existing arrangements, with 99% of UK goods exported to the bloc now eligible for zero tariffs.
This includes cheese, cars, chocolate, machinery, gin and whisky, while Downing Street said the services industry would also enjoy “reduced red tape and greater access to growing Pacific markets”.
The deal has been praised by a number of business groups, including the Confederation of British Industry (CBI), Standard Chartered bank and the world’s second-largest wine and spirits seller Pernod Ricard.
But other trade experts have warned it will not make up for the economic hit caused by leaving the European Union.
Chancellor Jeremy Hunt said joining the CPTPP is a “massive opportunity” for British exporters and shows “our influence in this part of the world is becoming more significant”.
Ms Badenoch told Sky News the difference between being part of the CPTPP and the EU is “we make the rules and regulations on our standards”.
She promised the deal is “not going to displace farmers in the UK” and said it will provide more competition for EU countries so “people don’t have to buy what they don’t want”.
Ms Badenoch admitted the lower tariffs will apply to palm oil, which is responsible for destroying orangutan habitats, but said you “have to make trade-offs” when doing a deal and said the UK currently buys 1% of Malaysia’s exports and “moving to 2% from 1% is not what is going to cause deforestation.”
She claimed the UK will have “more influence” on sustainability as part of the bloc – despite Greenpeace calling the deal “outrageous”.
“Palm oil is actually a great product, it’s in so many of the things we use,” she added.
“This is not some illegal substance we’re talking about and actually there are other crops in the EU that are causing deforestation that fit within EU rules.”
The UK began negotiations to join the bloc in September 2021 when Boris Johnson was in Downing Street.
The signatory countries of the CPTPP are home to 500 million people and the government claims the deal will be worth £11 trillion in GDP, accounting for 15% of global GDP.
However, critics said the impact will be limited, with official estimates suggesting it will add just £1.8bn a year to the UK economy after 10 years, representing less than 1% of UK GDP.
Mr Sunak said the agreement “puts the UK at the centre of a dynamic and growing group of Pacific economies”.
“We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms,” he added.
“As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation.”
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‘Real milestone for British industry’
The announcement was welcomed by business group the CBI which called it “a real milestone for the UK and for British industry”.
Interim general director Matthew Fell said: “Not only does the agreement provide greater access to a group of fast growth economies representing 14% of global GDP and over 500 million consumers, but membership reinforces the UK’s commitment to building partnerships in an increasingly fragmented world.
“CPTPP countries and business need to work together to future-proof the rules-based trading system and stimulate growth with a focus on digital, services and resilient supply chains.”
Labour said the agreement represented “encouraging” progress but it needed to see details.
The party’s shadow trade secretary Nick Thomas-Symonds said: “The Conservative government’s track record in striking good trade deals is desperately poor.
“Other countries joining CPTPP arrangements have secured important safeguards and put in place support for their producers: it is vital that ministers set out if they plan to do the same.”
Singapore is one of the now-12 members of the CPTPP
‘EU should be priority’
The Institute of Directors said it was “vital the UK signs trade deals to restore our international reputation since Brexit”.
But it added “complete reorientation” to the Indo-Pacific would not solve “the very real problem that businesses currently face – namely that they have many more trade related challenges than they did six years ago”.
“From our surveys, directors have told us that the EU-UK relationship is a priority issue the government needs to address in order to support business,” they said.
“UK companies still rely on the long-established links they have with EU markets, which are directly on our doorstep and with whom they have closer historical ties.
“The Indo-Pacific strategy will open up important opportunities for UK businesses, but the government must not forfeit the significance of our relationship with the EU in order to do so.”
The moment could have felt so different. It should have felt so different.
It was supposed to come a long time ago, and it was supposed to be the outcome of a peace process, of reconciliation, of understanding, of coexistence and of healing.
If it had happened the right way, then we’d be celebrating two states living alongside each other, coexisting, sharing a capital city.
As it happened: France recognises Palestinian state
Destroyed buildings in Gaza, as seen from Israeli side of the border.
Pic: Reuters
Instead, the recognition of Palestine as a state comes out of the rubble of Gaza.
It has come as a last-ditch effort to save all vanishing chances of a Palestinian state.
Essentially, the countries which have recognised Palestine here at the UN in New York are jumping to the endpoint and hope to now fill in the gaps.
Those gaps are huge.
Even before the horror of the Hamas attack on 7 October 2023, there was almost no realistic prospect of a two-state solution.
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Two-state solution in ‘profound peril’
Israeli settlement expansion in the West Bank and Benjamin Netanyahu’s divide-and-conquer strategy for the Palestinian Authority in the West Bank and Hamas in Gaza had made reconciliation increasingly hard.
The Hamas attack set back what little hope there was even further, while settlement expansion by the Israelis in the West Bank accelerated since then.
An updated map of Israel and Palestine on the Foreign, Commonwealth & Development Office website after the UK recognised the state of Palestine
The same questions which have made all this so intractable remain.
How to share a capital city? Who controls Jerusalem’s Old City, where the holy sites are located? If it’s shared, then how?
What happens to the settlements in the West Bank? If land swaps take place, then where? What happens to Gaza? Who governs the Palestinians?
And how are the moderates on both sides emboldened to dominate the discourse and the policy?
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Two-state solution ‘encourages terrorism’
Hope rests with Trump
Right now, Palestinian extremism is holding out in Gaza with the hostages, and Israeli extremism is dominant on the other side, with Netanyahu now threatening to fully annex the West Bank as a reaction to the recognition declarations at the UN.
It all feels pretty bleak and desperate. If there is cause for some hope, it rests with Donald Trump.
Donald Trump is the only man who can influence Israel’s Benjamin Netanyahu (below). Pic: AP
Pic: Reuters
Over the next 24 hours in New York, he will meet key Arab and Muslim leaders from the Middle East and Asia to present his latest plan for peace in Gaza.
Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan, Turkey, Indonesia, and Pakistan will all participate in the meeting.
Delegates applaud after Emmanuel Macron announced France’s recognition of a state of Palestine. Pic: AP
They will listen to his plan, some may offer peacekeeping troops (a significant development if they do), some may offer to provide funding to rebuild the strip and, crucially, all are likely to tell him that his Abraham Accords plan – to forge ahead with diplomatic normalisation between Muslim nations and Israel – will not happen if Israel pushes ahead with any West Bank annexation.
Netanyahu will address the UN at the end of the week, before travelling to the White House on Monday, where he will tell Trump what he plans to do next in both Gaza and the West Bank.
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If Trump wants his Abraham Accords to expand and not collapse – and remember the accords represent a genuine diplomatic game changer for the region, one Trump is rightly proud of – then he will force Netanyahu to stop in Gaza and stop in the West Bank.
He is the only man in the world who can.
World
Israel is increasingly ostracised – and no matter how strong its army, it’s not a good place to be
Emmanuel Macron was in his element. Touring the UN’s main hall, hugging fellow leaders before taking to the podium.
He was here to make history. France, the country that carved up the Middle East over a hundred years ago along with Britain, finally giving the Palestinians what they believe is long overdue.
As it happened: France recognises Palestinian state
Yvette Cooper witnessed the event looking on. Her prime minister, Sir Keir Starmer, did the same over the weekend. Foregoing such hallowed surroundings, he beat the French to it by a day.
“Peace is much more demanding, much more difficult than all wars,” said Macron, “but the time has come.”
There were cheers as he recognised the state of Palestine.
The time for what? Not for peace that is for sure. The war in Gaza rages and the West Bank simmers with settler violence against Palestinians.
The French and British believe Israel is actively working against the possibility of a Palestinian state. Attacks on Palestinians, land seizures, the relentless pace of settlement construction is finishing off the chances of a two-state solution to the conflict, so time for unilateral action they believe.
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Could UK recognition of Palestinian state affect US relationship?
Without the horizon of a state of their own, Palestinians will resort to more and more extreme means.
The Israelis say they have already done so on 7 October and this move only rewards the wicked extremism of Hamas.
But the Netanyahu government has undeniably sought to divide and weaken the Palestinians and has always opposed a Palestinian state.
Israel still has the support of Donald Trump, but opinion polls suggest even in America public sentiment is moving against them. That shift will be hard to reverse.
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More than three quarters of the UN’s member nations now recognise a state of Palestine, four out of five of the security council’s permanent members.
The move is hugely problematic. Where exactly is the state, what are its borders, will it now be held to account for its extremists, who exactly is its government?
But more and more countries believe it had to happen. That leaves Israel increasingly ostracised and for a small country in a difficult neighbourhood that is not a good place to be, however strong it is militarily.
China will evacuate 400,000 people over a super typhoon that slammed into the Philippines and Taiwan today.
Super Typhoon Ragasa, which is heading to southeastern China, has sustained winds of 134mph.
Thousands of people have already been evacuated from homes and schools in the Philippines and Taiwan, with hundreds of thousands more to leave their homes in China.
Filipino forecasters said it slammed into Panuitan Island off Cagayan province with gusts of up to 183mph on Monday.
More than 8,200 were evacuated to safety in Cagayan while 1,220 fled to emergency shelters in Apayao, which is prone to flash floods and landslides.
The projected route of Super Typhoon Ragasa, by the Japanese Typhoon Centre. Pic: Japan Meteorological Agency
Domestic flights were suspended in northern provinces hit by the typhoon, and fishing boats and inter-island ferries were prohibited from leaving ports over rough seas.
In Taiwan’s southern Taitung and Pingtung counties, closures were ordered in some coastal and mountainous areas along with the Orchid and Green islands.
Officials in southern Chinese tech hub, Shenzhen, said they planned to relocate around 400,000 people including people in low-lying and flood-prone areas.
Strong waves batter Basco, Batanes province, northern Philippines, on Monday. (AP Photo/Justine Mark Pillie Fajardo)
Shenzhen’s airport added it will halt flights from Tuesday night.
In Fujian province, on China’s southeast coast, 50 ferry routes were suspended.
According to China’s National Meteorological Centre, the typhoon will make landfall in the coastal area between Shenzhen city and Xuwen county in Guangdong province on Wednesday.
The International Space Station captures the eye of Typhoon Ragasa. (Pic: NASA/Reuters)
A tropical cyclone with sustained winds of 115mph or higher is categorised in the Philippines as a super typhoon.
The term was adopted years ago to demonstrate the urgency tied to extreme weather disturbances.
Ragasa was heading west and was forecast to remain in the South China Sea until at least Wednesday while passing south of Taiwan and Hong Kong, before landfall on the China mainland.
The Philippines’ weather agency warned there was “a high risk of life-threatening storm surge with peak heights exceeding three metres within the next 24 hours over the low-lying or exposed coastal localities” of the northern provinces of Cagayan, Batanes, Ilocos Norte and Ilocos Sur.
Power was cut out on Calayan island and in the entire northern mountain province of Apayao, west of Cagayan, disaster officials said.
There were no immediate reports of casualties from Ragasa, which is known locally in the Philippines as Nando.
On Monday, Philippine president Ferdinand Marcos Jr suspended government work and all classes on Monday in the capital, Manila, and 29 provinces in the main northern Luzon region.
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