Ministers from TPP member countries pose for a commemorative photograph at the July 2023 TPP Ministerial Meeting in Auckland, New Zealand. The conference approved the UK's accession to the EU. (©Kyodo)
A protocol allowing the United Kingdom to join the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP / TPP) is now in effect. The UK has become the first new member to join the free trade grouping since the initiative was launched by 11 countries, including Japan, in 2018.
As a result, the ranks of the CPTPP member states have expanded to include Europe. Previously members had been limited to countries situated on the Pacific Rim. There is considerable concern that protectionism will intensify worldwide, not only in the United States, once the second Donald Trump administration is launched. There is therefore great significance in the global expansion of this free and fair economic zone. We welcome the UK's accession to the bloc.
Global GDP of 15%
The economies of the 12 TPP countries, including the UK, account for roughly 15% of the total global GDP. For the UK, strengthening ties with the Indo-Pacific region promises to provide a foundation for boosting growth. Trade with the TPP countries will be especially helpful since the UK exited the European Union (EU).
Since the Economic Partnership Agreement between Japan and the UK already exists, the economic impact of the UK joining the TPP is expected to be limited for Japan. However, the geopolitical significance of the UK's joining the TPP is worth noting. Its value is not just its economic impact.
Also, it is meaningful from a security perspective in the confrontation of authoritarian nations such as China and Russia. Both are pursuing economic and military hegemony. Meanwhile, the UK, a European maritime power, is strengthening its economic ties with the distant Indo-Pacific region.
Fair Trade Order Different from China
It is important to remember the original aim of the TPP. The parties intended to build an international trade order that was different from that of China, which continues to pursue unfair trade practices.
Expansion of TPP membership following the accession of the UK will also be challenging. At its November meeting in Canada, the group decided to begin accession negotiations with the Central American country of Costa Rica. Other countries that have applied to join include Taiwan, Ukraine, and Indonesia.
It is important to expand the circle of member countries. One important purpose is to make the TPP's high level of tariff elimination and advanced rules a new global standard.
China's application to join the TPP is a complicating factor, however. Allowing Beijing's entry would likely close the door to Taiwan's membership. Furthermore, China does not meet the TPP standards in many respects, including in its preferential treatment for state-owned enterprises. Therefore, it should not be allowed to join.
Addressing Economic Coercion
TPP member states must avoid being easily swayed to accept China out of the perceived advantages of its economic power. Meanwhile, Japan, the UK, and like-minded nations should step up their efforts to support other TPP members from China's deception.
Recently, as part of a review of its rules, the TPP has also been considering ways to address economic coercion and market-distorting practices. China is often criticized regarding these very issues.
Japan aims to take the lead in this discussion. In this regard, too, cooperation with the UK, which shares our values of freedom and democracy, is vital.
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(Read the editorial in Japanese.)
Author: Editorial Board, The Sankei Shimbun
