The Asian trade pact will have a new member, China
After the US, UK and Australia allied to counter Chinese influence in Asia, China applied to sign up to CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
TPP (Trans-Pacific Partnership) was established by former President of the United States, Barack Obama in 2016 to counterbalance China’s ever-growing power. Donald Trump, however, pulled the US out of the agreement the next year and CPTPP was formed with Japan as the leader.
China’s application to become a CPTPP member will not be simple as they are currently in a trade war with Australia and are in a dispute with Canada; both CPTPP members.
This being said, China has extended tariff exemptions for 81 products imported from the US as a way to calm their trade war.
How to benefit from the new freeports in England
As of March, 8 freeports were declared for England. These are their locations: East Midlands Airport, Felixstowe and Harwich, Humber region, Liverpool City Region, Plymouth, Solent, Thames, Teesside.
This comes with many positives, such as tax benefits. Companies will be exempt to pay the duty, VAT suspension and easier customs procedures. These benefits affect also business rates and NIC (national insurance contributions).
GOV. The UK has guided the different procedures for the Freeports. Click here to be redirected to the official site. On October 8th 2021, applications for special procedures will open, click here for the application process
UK-US trade deal
On the Prime Ministers visit to the US, he explained what the priorities of this relationship will be. Climate change, the new AUKUS security pact and operations pulling people out of Afghanistan are the top concerns at this moment. Johnson explains that the main focus is on finalising a good free trade agreement rather than a quick fix.
This being said, with midterm elections coming up in November, any deal negotiation may be questioned if the Republican party takes back control.
The upcoming lift on travel restrictions for fully vaccinated passengers from the majority of EU countries and the UK will be great news for business and trade explains Johnson.
A new focus is on the 3 As Asia, Americas and Africa
It is difficult to pinpoint the extent of the consequences of Brexit as it is happening parallel to COVID. The UK is eager to improve the trade environment, increase the density of trade and welcome the introduction of a Global Tariff. Simplified trading rules and removed costs for traders were a result of the Global Tariff.
The new focus is going to be on the 3 A's the growing middle class is growing which in turn leads to an increase in demand for high-quality goods which the UK specialises in.
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