Positive sign that more countries are eager to join CPTPP trade bloc

HARDLY a week has gone by of late without one country or another expressing interest in joining the multilateral trade deal known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

It is easy to see why countries big and small from all corners of the globe want to get admitted - no matter how long the ascension process might take - given the vast benefits that await them if they are successful. For one, the agreement removes a hefty 95 per cent of tariffs between its existing 11 Pacific Rim members - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Combined, these nations have a population of over half a billion people and generate more than 13 per cent of the world's income.

On Tuesday, the UK began the long negotiation process to join the CPTPP, which Prime Minister Boris Johnson's government regards as a "glittering post-Brexit prize" that it needs to seize, with London looking to rely less on Europe and instead towards geographically further but faster-growing consumer markets. Like many of the other bloc's members, the CPTPP is also regarded as a crucial way to both gain and exert influence in the Indo-Pacific region where China is by far the most dominant power.

Speaking of China, the world's second-largest economy is also actively considering being part of the CPTPP, having already put pen to paper on the other mega trade deal, the 15-nation Regional Comprehensive Economic Partnership. Some see China's plan to join the CPTPP as a way to strengthen and deepen its links with America's closest allies, especially now with the Biden administration in charge.

There have been growing calls for the US to play a more active role in the Indo-Pacific region, and key to that would be to rejoin the CPTPP. The agreement was one of the major trade policies during former president Barack Obama's time in office, but his successor Donald Trump withdrew the US from the deal in 2017.

During his election campaign last year, current US President Joe Biden spoke briefly about the possibility of Washington re-entering the negotiations, but has not shown any firm interest since he was sworn in five months ago.

The CPTPP does not seem to rank highly on Mr Biden's to-do list given that there are yet so many hurdles to overcome, from domestic considerations within the US to a misalignment over many issues already agreed on under the existing agreement. It is a missed opportunity for the other CPTPP members, given that the US economy alone accounts for nearly a quarter of the world's gross domestic product (GDP).

There are several other horses still in the race as the CPTPP family looks set to expand in the coming years. South Korea has already thrown its name into the hat, although it must carefully navigate its challenging bilateral relationship with Japan (the current chair of the CPTPP). Taiwan, the Philippines, Thailand and Indonesia have all indicated different degrees of interest to join the club over the past year or so, although the bar needed for accession is considerably high for these developing economies.

The UK's formal entry into the negotiating table could well be the kickstarter for others to hand in their formal application too. All things considered, it is a positive sign that so many countries see the CPTPP as a beacon of hope during a time of growing protectionism and ongoing trade friction in the global economy.

READ MORE: Britain begins negotiations to join trans-Pacific trade deal