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The UK and Singapore have signed a free trade agreement, bringing positive news for Prime Minister Boris Johnson as the country remains locked in negotiations with the EU. International Trade Secretary Liz Truss signed the agreement with her Singaporean counterpart Chan Chun Sing in the city-state last week. The new agreement covers more than £ 17 billion of trade in goods and services and largely replicates the existing FTA between the EU and Singapore.
Under the current agreement, 84 percent of tariffs applied to Singapore’s exports to the UK are exempt, with the balance set to be settled in November 2024.
Truss said the deal was “part of a much broader strategic investment for the UK, bringing us one step closer to joining Singapore” in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), a regional trade agreement.
He added: “Joining the CPTPP would boost” UK economic security, diversify supply chains and strengthen the global consensus for rules-based free trade. “
The CPTPP is a high-quality free trade agreement that unites Australia, New Zealand, Canada, Japan, Singapore, Vietnam, Mexico, Malaysia, Peru, Chile and Brunei.
It covers nearly 14 percent of the world economy and was the centerpiece of President Barack Obama’s strategic turn toward Asia.
America’s involvement was immediately ruled out by President Donald Trump on his third day in office, but with Democrat Joe Biden soon replacing him in the White House, things could change.
In an interview with Express.co.uk, Alan Winters, director of the Trade Policy Observatory at the University of Sussex, said the EU is concerned about the possibility of the United States and Britain joining.
He said, “They definitely care about it.
“The EU has agreements with quite a few countries in the CPTPP, but not all.
“It would be much more difficult for the EU to conclude agreements with countries like Australia, for example, if Britain and the United States joined.”
Professor Winters added: “But what they are concerned about is that there are some places where CPTPP has rules that members accept.
“Digital commerce is one of those areas.
“Over the last decade, perhaps longer, the EU has become a regulatory magnet.
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“Let’s hope they get excited about that prospect
“It would be a real improvement for the UK and for all other members of the association.”
When asked if Britain’s entry could make it easier for a future American administration to return to the association, Abetz said: “That is one possibility.
“They seem to have problems with the main trade agreements, they want to keep their flexibility and independence.
“But the more we can involve the UK in world affairs, as a separate entity, the better it will be for everyone.”
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