The UK will accede to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) by 15 December, the government has announced today (29 August).
Approval
It follows the ratification of the UK’s accession to the bloc by Peru, with which the UK concluded a tax agreement earlier this year, taking them to the required six approvals from existing CPTPP nations. Once the UK is included, the bloc will account for 15% of global GDP and will include around 500 million consumers.
The government says that almost all – over 99% - of UK goods exports to CPTPP countries will be free of tariffs once the accession is complete.
The other members of the deal include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. By 2040, the government adds, the UK’s membership of the bloc could contribute an extra £2bn to its GDP.
‘Good news’
Trade minister Douglas Alexander said the announcement was “good news for UK businesses”, bringing them closer to being able to make the most of the partnership.
“My message to businesses is to get in touch with the Department for Business and Trade to find out how CPTPP could benefit your business, if you haven’t already.
“We’re extremely grateful to all the CPTPP partners that have already ratified our accession - Japan, Singapore, Chile, New Zealand, Vietnam and now Peru - and look forward to more doing so over the coming months.”
Business and trade secretary Jonathan Reynolds wrote in the Guardian on Sunday (25 August) that joining CPTPP is a “real win” for UK exporters.
Supply chain resilience
Marco Forgione, the director general of the Chartered Institute of Export & International Trade, said that “the ratification of CPTPP marks an important stage in the UK’s trading future”.
“British businesses now have tariff free access to some of fastest growing markets in the world to sell our goods and our world leading services. This is an opportunity which can help reshape the UK economy.
“At a time when global trade has been weaponised, this partnership can help the UK establish resilient and robust supply chains across Southeast Asia, Central and South America. In a world of growing geopolitical uncertainty, the expanding trading community of CPTPP nations offers an important counterpoint.
“Now CPTPP is ratified the real work begins to make sure businesses understand how to take advantage of the immense opportunities for UK services and goods in CPTPP nations. There is a great opportunity for UK businesses to grow.”