(Adds details of economic impact)
By William James
LONDON, June 22 (Reuters) - Britain will begin negotiations
on Tuesday to join a trans-Pacific trade deal that it sees as
crucial to its post-Brexit pivot away from Europe and towards
geographically more distant but faster-growing economies.
The Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) removes 95% of tariffs between
its members: Japan, Canada, Australia, Vietnam, New Zealand,
Singapore, Mexico, Peru, Brunei, Chile and Malaysia.
Britain hopes to carve out a niche for itself in world trade
as an exporter of premium consumer goods and professional
services. Accession to the pact would supplement trade deals
London is seeking, or has already agreed, with larger members.
"This part of the world is where Britain’s greatest
opportunities lie. We left the EU with the promise of deepening
links with old allies and fast-growing consumer markets beyond
Europe," trade minister Liz Truss said. "It is a glittering
post-Brexit prize that I want us to seize."
The CPTPP is forecast to lead to only a minimal gain in
British exports or economic growth. But it locks in market
access, including for the legal, financial and professional
services sectors, and is seen by ministers as an important way
to gain influence in a region where China is increasingly the
dominant economic force.
Joining the CPTPP in its current format could add around 1.8
billion pounds ($2.5 billion) to the economy over the long-term
- or less than 0.1% of pre-pandemic gross domestic product,
according to British government modelling published on Tuesday.
That gain could rise to 5.5 billion pounds - or 0.25% of GDP
- if Thailand, South Korea and the United States were also to
join the bloc.
Unlike the European Union, the CPTPP does not impose laws on
its members, it does not aim to create a single market or a
customs union, and it does not seek wider political integration.
REMOVING TARIFFS
The process of negotiating membership is largely about
proving to existing members that Britain can meet the group's
standards on tariff removal and trade liberalisation, and then
setting out details of how and when it will do so.
"The CPTPP agreement has strong rules against unfair trade
practices like favouring state-owned enterprises, protectionism,
discriminating against foreign investors, and forcing companies
to hand over private information," the trade department said in
a statement.
"The UK's joining will strengthen the international
consensus against such unfair practices," it added.
The government is expected to publish documents setting out
its assessment of the benefits of membership on Tuesday, but
highlighted cars and whisky as goods exports that would benefit.
The United States withdrew from an earlier planned
trans-Pacific trade pact under then-president Donald Trump. His
successor, Joe Biden, spoke prior to his election last November
about the possibility of renegotiating the deal, but has not
laid out any firm plans since taking office.
($1 = 0.7208 pounds)
(Reporting by William James; additional reporting by Andy Bruce
Editing by Gareth Jones and Peter Graff)