As the years winds down, the UK accedes to a regional trading bloc, pork producers get a bigger crack at the Chinese market and consumers brace for a more expensive cup of coffee as bean prices surge.
The big picture: Later this week (15 December) the UK will accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trading bloc. Comprised of 11 other nations (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam), and over half a billion people, joining the bloc will confer additional access to these markets.
While the UK already has bilateral trade deals with nine of the nations (excluding Malaysia and Brunei), CPTPP “is going to add additional options for trade and provisions on top of these”, according to the Department for Business and Trade’s CPTPP utilisation lead Olivia Herford.
Speaking on a Chartered Institute of Export & International Trade webinar last month, she and Chartered Institute expert Garima Srivastava highlighted the benefits of the deal to UK firms.
Cumulation rules, enabling firms to gain preferential tariff treatment by incorporating parts produced in CPTPP nations into their final product, will be especially useful for “sectors with complex supply chains like automotive or electronics”, said Srivastava.
Good week/bad week: A great week for UK pork exporters, who have gained greater access to the Chinese market – the world’s largest pork importer.
The UK government announced earlier this week (9 December) that it had agreed the end of Covid-era restrictions on unprocessed pork products, citing industry claims that this could boost revenue by £80m. The UK’s pork exports were worth £180m last year.
Not such good news for coffee makers and producers, meanwhile, as beans hit record highs this week. The Guardian reports that the price for arabica beans, the world’s most popular, hit £2.70 a pound, having risen over 80% throughout 2024.
Poor weather in world-leading producers Brazil and Vietnam diminished harvests and constrained supplies, pushing prices up. Global brands like Nestle and Lavazza warned that prices are likely to remain high, with Nestle saying it would continue to practice “shrinkflation” – reducing product size while increasing price – to cope with rising input costs.
How’s stat? 8,489 tonnes. That’s the volume of chemicals banned on UK farms that are still exported abroad to nations with more lenient regulatory frameworks.
The Guardian has reported on the prevalence of toxic pesticides being sold to less developed countries, with pesticides containing 10 banned chemicals being sold to 18 countries last year.
The week in customs: Storm Darragh wrought havoc on Wales and Holyhead port is still reeling. Traders were required to divert their goods to other ports this week, until Holyhead could reopen. We have more details here.
Quote of the week: “It’s a hugely important trading area; it’s a market of about 500m people, it’s about 13% of global GDP and in the coming years will represent about 50% of the world’s middle class.”
Director general Marco Forgione, speaking to the BBC about the value of CPTPP markets.
What else we covered this week: Members can read an exclusive feature on the importance of translating for effectively entering new export markets.
We also covered chancellor Rachel Reeves’ speech to European finance ministers espousing the virtues of free trade, as well as the Northern Ireland Assembly vote that extended the Windsor Framework’s provisions for another four years.
There was also insight from two Global Labor Institute reports on the damage climate change poses for garment supply chains, from harming workers’ wellbeing in some of the world’s biggest clothing producers, like Bangladesh, Pakistan, Vietnam and Cambodia, to hitting export revenue and jobs.
True facts: The UK and Saudi Arabia have struck a deal to commercially produce graphene, one of the world’s most durable materials. Approximately 200 times stronger than steel, Saudi investment is said to support the building of futuristic eco-cities in its deserts.
The news sits at the nexus of economic opportunity and human rights concerns raised by greater economic cooperation between the UK and the Gulf Cooperation Council (GCC) - six Gulf nations the UK was negotiating a trade deal with under the previous Conservative administration.
Earlier this year, the BBC reported that Saudi authorities permitted the use of force to remove indigenous tribal people from parts of the desert intended for development.
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