UK has recently become the first European country to join the Indo-Pacific trade bloc Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- Previously, in 2023, CPTPP parties and the UK signed the accession protocol to enable the UK to join the CPTPP.
About CPTPP
- Genesis: It is a Free Trade Agreement across the Pacific signed originally by the 11 countries in March 2018 in Santiago, Chile and entered into force on December 30, 2018, after the US withdrew from the original Trans-Pacific Partnership (TPP) in 2017.
- Membership: Comprises 12 member nations, including the UK, with other members being Australia, Canada, Japan, New Zealand, Brunei, Chile, Malaysia, Mexico, Peru, Singapore, and Vietnam.
- Significance: The bloc accounts for about 15% of global GDP and provides trade access to a market of more than 500 million people.
Significance of such multilateral groupings for India
Recently, NITI Aayog CEO advocated for India to join trade blocks like CPTPP and RCEP (Regional Comprehensive Economic Partnership) due to following benefits:
- Economic Opportunities: Would allow India to tap into new markets and benefit from "China plus one" strategy.
- Export market: Reduced tariffs and access to expansive markets in the Asia-Pacific region can boost exports, particularly from the Micro, Small, and Medium Enterprises (MSMEs) sector that accounts for 40% of India's exports.
