Trade links encouraged with 'world's largest free trade bloc'

A former Chamber chief executive has urged the UK to prioritise developing links with the world 's largest - and newest - free trade bloc.

The bloc is the made up of 15 countries who have signed up to the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement among Asia-Pacific nations.

The 15 member countries are: Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.

Some of these countries are already part of a similar bloc, which is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The UK - in its efforts to find post-Brexit trade partners around the world - has already applied to join the latter.

But former Chamber boss Paul Faulkner (pictured), now chief of staff at RCL Partners, adviser to the Midland-based Richardson family business, which has property interests around the globe, believes it is important for the UK to align itself with RCEP as soon as possible.

He said: “From a UK perspective our eggs are very much in the CPTPP basket, with accession into this partnership as the first new member expected to be confirmed later this year.

“On an initial glance it might seem strange that having left the EU we would then seek to join a new trading bloc with countries based around the Pacific Rim.

“However, leaving a discussion on the merits of Brexit and the EU to one side for the purposes of this short piece, when one thinks about the rapid economic developments taking place in the Asia-Pacific, then finding ways to align ourselves more closely with this region makes far more sense, and provides a helpful platform for entrepreneurial businesses to use when searching out new opportunities. ”

The CPTPP is a free-trade agreement between 11 countries: Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam and Japan. Seven of these have joined RCEP, which came into being on 1 January this year.

RCEP is an agreement is intended to reduce tariffs and red tape. It is not as comprehensive as CPTPP, and does not focus on labour issues, environmental protection, or government subsidies.

But it is another sign of the growing influence of Asia in the world 's economy, as it shifts away from the west to the east.

Mr Faulkner said: “RCEP 's existence is a clear sign of how countries across that part of the world are taking pro-active steps to ensure that the economic establishment of what is increasingly being described as the 'Asian Century ' - with significant shifts in terms of an increasing Asian global share of trade, capital, people, knowledge and resources - is based on solid foundations.

“The Richardson family business has long held a number of interests around the Pacific Rim, from the west coast of Canada through to Singapore, Australia and New Zealand.

“Given that presence, and our ongoing thirst to seek out new business, we have been paying close attention to developments in the region for some time, and believe that these very clear economic shifts mark the area out as one that deserves ever closer engagement for those seeking future opportunities. ”