International Economics: IB Economics

The UK has joined The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - the first non-founder member to join. The 11 member group currently accounts for around 13% of global income, and is anticipated to grow faster than the rest of the world in the next few years.

However, for all the Business Secretary's claims about the significance of the deal, it's own estimates only suggest that it will add 0.08% to GDP in the next decade. If only we'd thought of joining local trade partnerships.   

But - at the same time as waging a trade war with China, the US was meant to be pursuing a free trade deal with the UK to come into effect after Brexit. 

However, as this article suggests, the reality doesn't match the rhetoric. 

At a time when the US is espousing greater protectionism, it's a pleasant surprise that the EU and Japan have signed a large free trade deal that should bring economic benefits to both economies. Of course, quite what effect it will have on Britain, post-Brexit, is anyone's guess. 

Mohammed El-Erian tries to find a silver lining to the current trade war, arguing that it might permit a global realignment, and modernisation of outdated trade practices, and potential benefits in future.

I hope that he's right - I cant help thinking that the President's brain is incapable of strategizing in this fashion. But then again, he does suggest it could be "Reagan moment" - perhaps suggesting that the unintended effects" of the decisions taken by those of limited intellectual ability can occasionally have positive ramifications.