The UK has begun talks to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which would provide a major free trade agreement with 11 different countries.
Britain first applied to join the bloc in January following the completion of the post-Brexit transition. If the talks are successful and Britain is admitted, it would lead to lower tariffs on a range of goods such as cars and whisky. The government said its aim is for 99.9 per cent of the goods it exports to be traded tariff-free.
That would mean sea freight companies increasing shipments to and from the UK and its new CPTPP partners, these being Australia, Canada, Japan, New Zealand, Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam. These 11 were all funding members and if the UK joined, it would be the first new entrant and the second largest economy after Japan.
Liz Truss, the secretary of state for international trade, said the Asia-Pacific area is the "part of the world where Britain's greatest opportunities lie". She claimed joining the CPTPP would be a "glittering post-Brexit prize".
While the agreement would come with some strings attached, such as co-operation on food standards, these will not have to be identical across all member states in the same way as applies in EU regulations.
The UK has already agreed a deal with Australia, although this has raised concerns by British farmers that they could be undercut by cheaper produce from down under. Ms Truss has denied this will be the case, claiming Australian food imports like beef will simply replace those not coming from the EU.
Originally called the Trans-Pacific Partnership, the CPTPP was founded in 2015 after more than five years of negotiations. The United States was one of the countries involved, but the election of Donald Trump saw it pull out in 2016 before the agreement could be ratified.
