THE U.K. APPLIES TO JOIN THE CPTPP: WHAT ARE THE IMPLICATIONS FOR CANADA?
The U.K’s request to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) could be a tremendous boon for this bloc. The CPTPP has 11 members at present, including Canada. However, four members — Peru, Chile, Malaysia and Brunei — have yet to complete the ratification process....
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| Format: | Article |
| Language: | English |
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University of Calgary
2021-04-01
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| Series: | The School of Public Policy Publications |
| Summary: | The U.K’s request to join the Comprehensive and Progressive Trans-Pacific
Partnership (CPTPP) could be a tremendous boon for this bloc. The CPTPP has
11 members at present, including Canada. However, four members — Peru, Chile,
Malaysia and Brunei — have yet to complete the ratification process. The U.K.’s
potential accession could lead the CPTPP to develop further in response to
renewed interest from present and prospective members.
Canada and the U.K. have already been discussing interim trading arrangements
in the form of the Trade Continuity Agreement (TCA), which replaces existing
rules designed when the U.K. was still a member of the European Union. Both
countries have committed to reaching a new, permanent bilateral agreement by
2024. If the U.K. joins the CPTPP, Canada will thus end up negotiating two trade
agreements with the same country at the same time.
Canada is unlikely to win additional access to the U.K. market beyond what it
enjoys through the TCA. At the same time, Canada is unlikely to grant the U.K. additional access to protected sectors through the CPTPP. But this doesn’t mean that
Canada has nothing to gain from the U.K. joining the CPTPP.
The addition of a substantial economy like the U.K. to the CPTPP could prompt the four
foot-dragging members to complete ratification. Without that, they will have no say in
the negotiations over the U.K.’s accession or the outcome. The U.K.’s experience could
also encourage non-members like South Korea and Taiwan to take the plunge and apply
to join the pact.
The United States was an original member of the CPTPP’s precursor, the Trans-Pacific
Partnership, but pulled out during the Trump administration. The U.K’s entry may not
be enough to convince the new government to change course and so far, the Biden
administration has not signalled that accession is a priority.
Still, the U.K.’s admission has the potential to expand the trading bloc and Canada should
make the most of this. It does require the careful adjustment of any potential Canadian
concessions granted as part of the CPTPP accession negotiations against the need for
leverage in future bilateral trade negotiations with the U.K. But this balancing act shouldn’t
prevent Canada from supporting the U.K.’s request to join the CPTPP. The opportunities
and rewards over the long term are too substantial for any other decision. |
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| ISSN: | 2560-8312 2560-8320 |