The United Kingdom is set to bolster its economy by joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December, as announced by the Government.
This strategic accession marks a significant milestone, allowing the UK to engage in a free-trade area that spans five continents. Following the receipt of the sixth and final ratification from Peru, the agreement will officially take effect on December 15, 2024.
Prior to this, five other CPTPP member countries—Chile, Japan, New Zealand, Singapore, and Vietnam—had already ratified the terms of the UK’s entry. The Government has expressed its commitment to maintaining close collaboration with the remaining member nations that are currently in the ratification process.
Enhancing Tariff-Free Exports to Stimulate the Economy
The Government projects that over 99% of existing UK goods exports to CPTPP member countries will become tariff-free once the agreement is enacted. This development is expected to encourage businesses to expand their exports into CPTPP markets, potentially boosting the UK economy by approximately £2 billion annually.
Marco Forgione, the Director General of the Chartered Institute of Export & International Trade, emphasized the advantages of this agreement: “British businesses now have tariff-free access to some of the 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.”
Moreover, Forgione highlighted the significance of the CPTPP in the current global landscape: “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.”
As the ratification of the CPTPP progresses, Forgione pointed out that the real work is just beginning: “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.”
Douglas Alexander, Minister of State for Trade Policy, echoed the sentiment regarding the positive implications of the UK’s accession: “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.”
