UK's biggest post-Brexit trade deal announced
Posted on 18th April 2023 at 14:55
The UK government recently announced the UK has joined a trade bloc alongside 11 countries including Canada, Australia, Japan and Vietnam. The deal promises reducing trade barriers, reducing tariffs and duties, whilst boosting trade with other trading partners across the globe for goods including cheese, machinery, chocolate and whisky.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement encompassing now 12 countries including the United Kingdom. The other countries included in the bloc are located either side of the Pacific Ocean - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The UK government has promised a reduction in trade barriers and tariffs - likely to result in a vast range of imports and exports to be eligible for zero tariffs going forwards, which will no doubt further open imports with those countries. The government will also be hoping this opens up a suite of new destinations for UK exports of food and goods produced in the country, resulting in a projected £1.8bn boost to the UK economy over the coming years.
Critics however advise the bloc consists of a number of countries with whom the UK already has trade deals agreed, such as Vietnam. Also, the estimated benefit to the UK economy is a projection over a period of 10 years - representing less than 1% of UK GDP.
Either way, in the post-Brexit position in which the UK finds itself, the need to sign up to new trade deals across the globe is a necessity, and the team at at Boast International will continue to be at the forefront of understanding any tariff changes, and will be in touch with all of our customers who may be impacted by this new deal once further details are announced in due course.
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