UK joins CPTPP

• The United Kingdom has formally agreed to become the first European country to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

ABOUT CPTPP

• CPTPP succeeded Trans-Pacific Partnership (TPP) after US withdrew from TPP in 2017.
• It was signed in March 2018 in Santiago, Chile.
• It is a free trade agreement (FTA) between 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
  • All 11 countries of CPTPP are members of Asia-Pacific Economic Cooperation.
  • UK will become 12^th member, and first in Europe to join since its inception.
  • India is not a member.
• CPTPP forms a trading bloc representing 500 million consumers and 5% of global GDP.
• It aims to eliminates tariffs and reduces barriers for 98% of exports within CPTPP member countries.
• It also prevents environmental abuses, such as unsustainable logging and fishing.
  • Countries that don’t comply will face trade penalties.