The UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP) in December to “boost UK economy”, said Government.
CPTPP, which is a free-trade area across five continents, will be joined by the UK after it has secured its sixth and final ratification from Peru. The agreement will officially enter into force by 15th December 2024.
Five other CPTPP members previously ratified the terms of the UK’s accession, these being Chile, Japan, New Zealand, Singapore and Vietnam. Government said it would continue to work closely with the remaining member countries who are in the process of ratifying the deal.
Tariff-free exports to “boost economy”
According to Government, over 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect. It said this would help businesses export more to CPTPP markets and could boost the UK economy by around £2 billion annually.
Marco Forgione, the director general of the Chartered Institute of Export & International Trade, said: “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.
“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.”
Minister of State for Trade Policy, Douglas Alexander, said that the UK’s accession was “good news”, stating: “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.”
