Policymakers underestimate CPTPP’s economic impact
19 July 2023
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Economics
In the Media
Economic Theory
25 June 2024
James Forder writes for CapX
IEA Academic and Research Director James Forder, has written for CapX arguing that the economic benefits of the UK’s accession to the CPTPP will be much greater than the government expects.
James wrote:
“The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signed this weekend by Trade Secretary Kemi Badenoch, ought to be a cause for celebration. It brings us into a trade area of 500 million people, covering 13% of global GDP.
“The ‘0.08% of GDP’ figure presumably comes from the Department for International Trade’s document…, but highlighted the point that this was the result of ‘static modelling’
“But here is a very clear case where treating the number that happens to have been estimated as carrying the important information is a terrible approach to the assessment of public policy. A proper appreciation of the advantages of this landmark agreement require a much broader understanding of the sources of the gains from free trade.”
You can read the full article here.
James wrote:
“The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), signed this weekend by Trade Secretary Kemi Badenoch, ought to be a cause for celebration. It brings us into a trade area of 500 million people, covering 13% of global GDP.
“The ‘0.08% of GDP’ figure presumably comes from the Department for International Trade’s document…, but highlighted the point that this was the result of ‘static modelling’
“But here is a very clear case where treating the number that happens to have been estimated as carrying the important information is a terrible approach to the assessment of public policy. A proper appreciation of the advantages of this landmark agreement require a much broader understanding of the sources of the gains from free trade.”
You can read the full article here.
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