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Secretary of State for International Trade and President of the Board of Trade, Minister for Women and Equalities Kemi Badenoch leaves 10 Downing Street.
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In a surprising turn of events, the United Kingdom has become a member of the Indo-Pacific Trade Bloc, a trade alliance valued at a staggering £12 trillion. This development holds significant implications for the UK, as it opens up opportunities for tariff-free trade with some of the world’s fastest-growing economies, including Japan, Thailand, New Zealand, Australia, and Mexico. With the UK’s inclusion, this trade bloc now surpasses the entire European Union in terms of its trading capacity. This article delves into the practical implications of this membership and its potential impact on the UK economy and society.
Tariff-Free Trade and Economic Growth
The UK’s accession to the Indo-Pacific Trade Bloc allows British businesses to engage in competitive trade by offering goods and services to these new territories without facing tariffs. This newfound advantage is expected to lead to a boost in the country’s Gross Domestic Product (GDP) and national income. Consequently, the increased revenue generated can be utilized to enhance public services such as education, healthcare, and law enforcement. The benefits of this trade bloc membership extend to the consumers in the UK as well, as it translates into more affordable imports, including popular Japanese automobile brands like Toyota, Honda, and Suzuki.
A Trading Bloc Without Political Intricacies
One notable distinction between the Indo-Pacific Trade Bloc and the European Union is that the former is purely a trade alliance devoid of political integration. Unlike the EU, this trading bloc does not involve commitments to an ever-closer union or the micromanagement of member countries’ regulations. Additionally, the UK is not subject to anti-competitive laws imposed by external authorities or the jurisdiction of foreign judges. The absence of free movement and hefty membership fees further distinguishes this trade bloc from the EU. Consequently, the UK has more freedom in negotiating its own foreign trade agreements without the EU’s influence.
Brexit and UK-EU Trade
Contrary to the claims made by those in favor of remaining in the EU, Brexit has not resulted in a cessation of exports to European countries. The UK continues to engage in tariff-free trade with the EU, and recent data highlights a positive trend in UK goods exports to EU countries. Exports to Iceland and Norway have shown significant growth of 29% and 28%, respectively, while exports to Germany, Ireland, and France have also experienced notable increases. These figures refute the notion that Brexit has been a disastrous decision for the UK’s economy.
The trade ministers of Singapore, Vietnam, and the United Kingdom, in Auckland, New Zealand July 16, 2023. STAFF / REUTERS
The Impact of the Indo-Pacific Trade Bloc
The inclusion of France in the Indo-Pacific Trade Bloc holds great potential for both countries. It is expected to reduce bureaucratic red tape, encourage market expansion, boost employment opportunities, and attract more investment. Notably, the services industry, which accounts for 80% of the UK economy, stands to benefit greatly from this trade bloc membership. The achievement of joining this alliance can be attributed to the tireless efforts of former Prime Minister Liz Truss during her tenure as International Trade Secretary, as well as the commendable work of the current Trade Secretary, Kemi Badenoch.
Debunking Economic Myths
There are persistent misconceptions surrounding the impact of Brexit on the UK economy. Claims that Brexit has resulted in a 4% reduction in economic output are unsubstantiated. The figure stems from a forecast made by the Office for Budget Responsibility in 2018, which relied on outdated data from 2014 and presumed that the UK would exit the EU under World Trade Organization terms. However, the actual economic performance tells a different story. From 2019 to 2022, UK GDP increased from £2.24 trillion to £2.49 trillion, an 11% rise. Even after adjusting for inflation, the economy remained stable. These figures paint a much more positive picture than the exaggerated 4% decline.
Acknowledging Challenges and Looking Ahead
While Brexit has demonstrated its merits, it is important to acknowledge the challenges that have arisen. Some businesses, especially small enterprises, have struggled due to increased red tape, delays, and additional costs associated with exporting. Additionally, Northern Ireland has faced unique difficulties. Furthermore, it is regrettable that British and European youths can no longer freely pursue career opportunities or establish lives in each other’s countries. However, it is crucial to remember that Brexit was a democratic decision made by a majority of the British people. Overall, it has brought about a restoration of sovereignty and is proving to be beneficial for the UK’s economy and opportunities.
Federal legislation implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership received royal assent October 25, moving Canada closer to becoming the sixth country to implement the trade deal. | Twitter/@CanadaTrade image
The UK’s membership in the Indo-Pacific Trade Bloc marks a significant milestone for the country and reinforces the vision of a “Global Britain.” By gaining access to a market of 500 million people and collaborating with economies that are thriving, the UK can leverage its newfound trade opportunities to enhance its economic growth, create jobs, and expand its influence on the global stage. This trade alliance, devoid of political complexities, presents a triumph for the UK and underscores the resilience of the Brexit decision. As the country embraces this new deal, it moves forward with confidence, demonstrating that the doubts surrounding Brexit have been proven wrong. Brexit is shaping a promising future for a resurgent UK, poised to be a global leader in trade and prosperity.