Britain begins negotiations to join trans-Pacific trade deal

“Britain will begin negotiations on Tuesday to join a trans-Pacific trade deal that it sees as crucial to its post-Brexit pivot away from Europe and towards geographically more distant but faster-growing economies,” said Reuters during early Tuesday morning in Asia.

The deal becomes crucial for the UK as the partnership, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), removes 95% of tariffs between its members: Japan, Canada, Australia, Vietnam, New Zealand, Singapore, Mexico, Peru, Brunei, Chile and Malaysia per Reuters.

The news also quotes UK Trade Minister Liz Truss saying, “This part of the world is where Britain’s greatest opportunities lie. We left the EU with the promise of deepening links with old allies and fast-growing consumer markets beyond Europe". The British diplomat also said, "It is a glittering post-Brexit prize that I want us to seize."

The possibilities of the US joining back the trade partnership were also cited in the news.

Market implications

Given the market’s attention to Fed Chair Jerome Powell’s testimony, the news failed to entertain traders. That said, GBP/USD fades rebound from the two-month lows while taking rounds to 1.3930 by the press time.