Source · Select Committees · Foreign Affairs Committee
Recommendation 5
5
Accepted
Paragraph: 28
Supporting continued prioritisation of Indo-Pacific relationships, trade, and investment for mutual economic benefit.
Conclusion
We support the continued prioritisation of the UK’s relationship with Indo-Pacific countries and all efforts to expand trade and investment links with one of the fastest growing regions of the world, which will benefit the economies of the UK and our partners globally.
Government Response Summary
The government agrees with the committee's support and details specific actions, including signing the CPTPP Accession Protocol, pursuing further FTAs, increasing inward investment, and tackling market access barriers in the Indo-Pacific region.
Paragraph Reference:
28
Government Response
Accepted
HM Government
Accepted
The Government agrees and welcomes the Committee’s support for its increased economic engagement with the Indo-Pacific region. The Indo-Pacific is the engine of global growth; expected to account for 54% of global GDP growth between 2021 and 2050. The UK aims to capitalise on its growth and dynamism to support UK prosperity. The UK signed its Accession Protocol to CPTPP on 16 July 2023. Entry into force will take place once both the UK and CPTPP Parties have finished their ratification processes. Our ambition is to complete the required domestic procedures as soon as possible with the aim of entry into force in the second half of this year, following the usual Parliamentary scrutiny and passage of any required legislation. Joining CPTPP will give UK businesses enhanced access to the Malaysian market for the first time. CPTPP also puts the UK at the heart of a dynamic group of free trading countries, as the world economy increasingly centres on the Indo-Pacific region. We have an ambitious trade negotiations programme in the region and have already taken steps to make this vision a reality: Continuing negotiations on the UK-India FTA (a deal which would boost our current trading relationship, already worth £38 billion in 2023); Working to implement new and ambitious FTAs with Australia and New Zealand (which are expected to increase bilateral trade by 53% and 59% respectively in the long run); Launching negotiations to upgrade the UK-Korea FTA as announced during the recent State Visit (which would enhance the UK’s existing trade relationship with South Korea, worth £18.3 billion in 2022); Signing a ground-breaking Digital Economy Agreement with Singapore. Using the implementation committees for the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) to open new opportunities for UK companies, for example, on supporting Japan’s road to net zero and the digitisation of the economy. The Indo-Pacific accounts for the third largest source of investment for the UK after Europe and North America. We are working to increase high value inward investment from the region into UK priority areas such as Net Zero and Levelling Up to deliver economic growth and prosperity. We are supporting UK business by tackling priority market access barriers in the region and working with key Indo-Pacific partners to address shared challenges in critical supply chains, discourage trade restrictive measures and champion free and fair trade, supporting key Integrated Review commitments.