UK’s biggest post-Brexit economic opportunity dawns

IN THE midst of the UK’s June 2016 Brexit referendum, bold claims were made by some Leavers about huge economic opportunities the nation would gain if it left the European Union. Yet, by and large, those gains have not come close to fully materialising almost a decade later.

Some of the big prizes that were highlighted by Leavers such as Boris Johnson, UK prime minister from 2019-2022, include UK trade deals with the world’s two largest economies – the United States and China. Yet, the prospects for an agreement with Washington remain highly uncertain, and there is probably even less possibility of a deal with Beijing.

However, one significant ray of light on the trade and investment front is the UK’s accession on Sunday (Dec 15) to the Comprehensive and Progressive Trans Pacific Partnership (CPTPP) with 11 markets in the Asia-Pacific and the Americas. With the United Kingdom joining, the combined gross domestic product of the CPTPP members increases from over £9 trillion (S$15.43 trillion) to around £12 trillion, and from around 12 per cent of global GDP to 15 per cent.