The United Kingdom is the first European country to join a £12trillion Indo-Pacific free trade partnership
Boris Johnson says a new deal has only been made possible because of Brexit (Image: Getty)
Boris Johnson says the Government “must be stopped” from reshackling this country to Brussels with a major trade deal entered today set to bring a £2billion a year Brexit boost.
The former prime minister is adamant that joining some of the world’s most exciting emerging economic powerhouses in the Indo-Pacific partnership will restore Britain to its rightful place on the global stage.
He stressed joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a £12trillion group of nations including Japan, Malaysia and Singapore, has only been made possible by Brexit.
Mr Johnson said: “Joining the CPTPP is the way ahead for free-trading global Britain and a huge Conservative achievement.
“Joining these fast growing economies in the Pacific is only possible because of Brexit – because we took back control of our laws and our tariffs.
“It would be a huge mistake to drift back into the orbit of Brussels and sacrifice our economic independence. But that is what Starmer wants – and he must be stopped.”
Reform UK leader Nigel Farage also warned against linking up with Brussels, saying: “There is a very big world outside of the EU and much of it is growing.
“To go in lockstep with a politically and economically failing EU is madness.”
Their warnings came as Labour worked to “reset” relations with Brussels and the latest figures showed Britain’s economy shrank in October for the second month in a row.
It has also been reported that EU chiefs will insist the UK surrender fishing rights and accept its red tape as the price of a fresh trade deal.
But Business and Trade Secretary Jonathan Reynolds today insisted the Government would grasp post-Brexit opportunities “with both hands”.
He said household wages could grow by £1billion every year in the long-term as a result of the UK becoming the first European nation to join the 12-member trading partnership.
He said: “This Government is not bogged down in dogma. We are determined to deliver higher living standards for the British people.
“And where there are opportunities for Britain to forge a new path post Brexit – delivering opportunities for business and cheaper prices for consumers – we will not hesitate to grasp those opportunities with both hands.”
Joining the partnership is the latest stage in Britain’s efforts to forge new trading alliances after gaining freedom from Brussels.
This will be the first time the UK has had free trade deals with Malaysia and Brunei – economies with a combined GDP of more than £330billion last year.
The British Chambers of Commerce welcomed it as “a red-letter day for our traders”.
The removal of tariffs could result in benefits including cheaper fruit juices from Peru and vacuum cleaners from Malaysia.
The Government has insisted there will be no return to the single market, the customs union or freedom of movement but it is pursuing an “economic reset” with the EU and wants to break down trading barriers.
But former prime minister Liz Truss claimed Labour’s “tedious attachment to the EU model” stops the Government making the most of Brexit.
She said: “Having made the UK’s formal application to join the CPTPP when I was International Trade Secretary, I’m delighted our membership of this vibrant trading bloc has finally been secured.
“Not only does it underline our position as a truly global trading nation, but the bloc also serves as a critical bulwark against China.
“Make no mistake, this was achieved by Conservatives in office – no thanks to the Labour politicians whose tedious attachment to the EU model prevents them from grasping the benefits of Brexit as we pursue an independent trade policy, no longer shackled by Brussels.”
It is hoped new countries will join the partnership, unlocking more trade opportunities. Costa Rica is expected to join next and there is excitement about the prospect of Indonesia – with a GDP of more than £1trillion and a population of around 280 million – signing-up.
Maxwell Marlow, of the Adam Smith Institute, said: “The CPTPP is a genuinely free trade area – it does not require us to sign-up to any regulations, contribute any taxpayer cash or stop us from pursuing even more trade deals.
“This is exactly the sort of agreement that post-Brexit Britain should be signing up to.”
Champions of its membership hope it will boost not just Britain’s economy but the nation’s security.
Marcus Solarz Hendriks, head of national security at the Policy Exchange think-tank, said: “With UK interests increasingly served by deepening security and economic links to the Indo-Pacific, this is a demonstration of the advantageous strategic flexibility gained since our departure from the EU.”
Callum Price, of the Institute of Economic Affairs, added: “Even many Brexit-sceptics will acknowledge that our newfound ability to join free trade agreements like the CPTPP is a Brexit benefit.
“We could not have done this as long as we were members of a customs union, and did not have an independent trade policy.
“Britain used to lead the way as a free trading nation, and we should be proud that we are now doing that again.”
Former Conservative MP Anthony Mangnall, who was a cheerleader for joining the bloc, hopes this is just the beginning.
He said: “If approached correctly then the UK can take advantage of post-Brexit freedoms and negotiate more deals, such as this, of significant value.”
Kemi Badenoch: This is ‘only the start’
Kemi Badenoch worked to seal the trade deal (Image: Leon Neal/Getty Images)
Leader of the Opposition Kemi Badenoch negotiated Britain’s entry into the Indo-Pacific trading partnership during her time as business and trade secretary.
But she warned that joining the trade block is “only the start”. The challenge is now for the Government to deliver real benefits.
She said: “The Conservatives delivered CPTPP – a trade deal that brings enormous benefits to everyone from British farmers to fintech and small businesses to the largest manufacturers. The deal places the UK in a bloc with the fastest growing economies in the world and was a key Brexit benefit to add to our EU trade deal.
“However, joining a trade bloc is only the start. Labour spent the last parliament mocking our CPTPP negotiations, and they now have a responsibility to ensure that UK companies can make the most of this landmark deal.”
The CPTPP agreement is now in force between the UK and the members of the bloc who ratified Britain’s accession by October 16 – Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam. It is due to apply to trade with Australia on Christmas Eve, and will come into force with Canada and Mexico 60 days after each of their ratification processes is complete.
The Government insists there will be no return to the single market, the customs union or freedom of movement but it is pursuing an “economic reset” with the EU and wants to break down trading barriers.
Former prime minister Liz Truss claimed that Labour’s “tedious attachment to the EU model” stops the Government making the most of Brexit.
She said: “Having made the UK’s formal application to join the CPTPP when I was International Trade Secretary, I’m delighted our membership of this vibrant trading bloc has finally been secured. Not only does it underline our position as a truly global trading nation, but the bloc also serves as a critical bulwark against China.
“Make no mistake, this was achieved by Conservatives in office – no thanks to the Labour politicians whose tedious attachment to the EU model prevents them from grasping the benefits of Brexit as we pursue an independent trade policy, no longer shackled by Brussels.”
It is hoped new countries will join the CPTPP, unlocking more trade opportunities. Costa Rica is expected to join next and there is excitement about the prospect of Indonesia – with a GDP of more than £1trillion and a population of around 280 million – signing-up.
Maxwell Marlow of the Adam Smith Institute said: “The CPTPP is a genuinely free trade area – it does not require us to sign-up to any regulations, contribute any taxpayer cash or stop us from pursuing even more trade deals. This is exactly the sort of agreement that post-Brexit Britain should be signing up to.”
Champions of CPTPP membership hope it will boost not just Britain’s economy but the nation’s security.
Marcus Solarz Hendriks, head of national security at the Policy Exchange think tank, said: “With UK interests increasingly served by deepening security and economic links to the Indo-Pacific, this is a demonstration of the advantageous strategic flexibility gained since our departure from the EU.”
Callum Price of the Institute of Economic Affairs added: “Even many Brexit-sceptics will acknowledge that our newfound ability to join free trade agreements like the CPTPP is a Brexit benefit. We could not have done this as long as we were members of a customs union, and did not have an independent trade policy.
“Britain used to lead the way as a free trading nation, and we should be proud that we are now doing that again.”
Former Conservative MP Anthony Mangnall, who was a cheerleader for joining the bloc, hopes this is just the beginning.
He said: “If approached correctly then the UK can take advantage of post-Brexit freedoms and negotiate more deals, such as this, of significant value.”
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