The European Union and Singapore have signed a free trade agreement, providing positive news in favor of Prime Minister Boris Johnson, as the country is stuck in talks with the EU. International Trade Affairs Secretary Liz Truss signed the agreement with her Singaporean counterpart Chan Chun Singh in the city-state last week. The new agreement covers more than 17 17 billion in trade in goods and services and replicates the existing EU-Singapore FTA.
Under the current arrangement, 844 per cent duty exemption applicable to Singapore exports to the UK has been given, the balance will be reduced by November 2022.
The Trans-Pacific Partnership (CPTPP), a comprehensive and progressive agreement for a regional trade agreement, said the agreement was “part of a broader strategic investment for the UK, taking us one step further in joining Singapore.”
He added: “Joining the CPTP will strengthen the UK’s global sensitivity to economic security, diversification of supply chains and rule-based free trade.”
The CPTP is a high-quality free trade agreement that binds Australia, New Zealand, Canada, Japan, Singapore, Vietnam, Mexico, Malaysia, Peru, Chile and Brunei together.
It covers about 14 percent of the global economy and was at the heart of Asian President Barack Obama’s strategic pivot.
U.S. participation with President Donald Trump was immediately canceled on the third day of his presidency, but the situation could change as Democrat Joe Biden soon replaces him in the White House.
In an interview with Express.com UK, Alan Winters, director of the Trade Policy Observatory at the University of Sussex, claimed that the European Union was concerned about the possibility of the United States and Britain joining together.
He said: “Of course they are concerned.
“The CPTP in the European Union has agreements with a number of countries, but not all of them.
“For example, joining Britain and the United States will make it more difficult for the EU to execute agreements with countries like Australia.”
Professor Winters added: “But what they are concerned about is that there are a few places where there are CPTP rules that members accept.
“Digital trade is one of those areas.
“Over the last decade, perhaps even more, the EU has become a regulatory magnet.
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“Let’s hope they are thrilled to see this possibility
“It will be a real development for the UK and all other members of the partnership.”
Asked if Britain’s entry would make it easier for future US administrations to return to the partnership, Mr Abez said: “This is a possibility.
“They think there are problems in big trade deals, they want to maintain their flexibility and independence.
“But the more we can engage with the world as an individual, the better for everyone.”