The UK has successfully taken a significant step towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade deal valued at £12 trillion in global GDP upon the UK’s entry. This move is expected to provide British businesses with numerous benefits, including lower tariffs and fewer trade barriers.
In addition to this development, the UK has also finalized the UK-Peru Double Taxation Agreement to prevent businesses from being taxed twice. This agreement is anticipated to reduce the costs of doing business with Peru, thereby supporting bilateral trade and investment.
By joining the CPTPP, the UK will account for 15% of global GDP, making over 99% of current UK goods exports to CPTPP members eligible for tariff-free trade. Currently, six economies need to ratify the deal by October for it to enter into force by the end of the year. Notably, countries like Singapore, Japan, and Chile have already ratified the agreement, with others in the pipeline.
Minister for Trade Policy, Greg Hands, emphasized the importance of swift ratification, stating, “The UK has been racing to get our ratification done because we know how much CPTPP will benefit British businesses.” This proactive approach aims to ensure that British businesses have access to new markets and reduced red tape on existing exports.
The ratification of CPTPP marks a crucial milestone in the UK’s trading future, according to Marco Forgione, Director General of the Institute of Export and International Trade. He highlighted that British businesses now have tariff-free access to some of the fastest-growing markets globally, offering significant opportunities to reshape the UK economy.
As global trade becomes increasingly complex, the CPTPP partnership presents an opportunity for the UK to establish resilient and robust supply chains across Southeast Asia, Central, and South America. This collaboration among CPTPP nations serves as a vital counterpoint amidst growing geopolitical uncertainties.
With the ratification of CPTPP, the focus now shifts to assisting businesses in leveraging the immense opportunities for UK services and goods in CPTPP nations. As Marco Forgione noted, “There is a great opportunity for UK businesses to grow.” This marks the beginning of the real work towards ensuring that businesses are well-equipped to maximize the benefits offered by CPTPP.
