A toothless trade deal

THE UK has joined a global trade bloc. The accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) was formally confirmed in a phone call between Trade Secretary Kemi Badenoch and representatives from the 11-member group.

We welcome trade deals that lower costs for consumers and open up new markets for British exporters. But this agreement will do little to boost our economy. While the CPTPP’s trading area covers a market of roughly 500 million people and 13 per cent of global GDP, the Government’s own estimates show accession will contribute just 0.08 per cent to UK output.

Britain is a services-led economy, but in trade, proximity still matters. Badneoch may not want to talk about it but the UK will be much poorer because of Brexit — the Office for Budget Responsibility puts the fall at four per cent over the long run.

In truth, this is a fact that neither main political party seems much interested in acknowledging.