UK to Join Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by December 15

UK to Join CPTPP, Unlocking Trade Opportunities and Economic Growth

The UK is set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by December 15th, according to the Department for Business and Trade. This move comes after Peru became the sixth and final member to ratify the UK’s application, joining Chile, Japan, New Zealand, Singapore, and Vietnam who had already backed the deal. The UK is the first European country to become a member and the first to join since the CPTPP was established in 2018.

Joining the CPTPP will provide significant benefits for the UK economy. More than 99 percent of current goods exported to CPTPP partners will be tariff-free, boosting the economy by approximately £2 billion annually by 2040. This is a significant achievement and has been hailed as a “Brexit success story” by Sir Simon Clarke, the former Conservative chief secretary to the Treasury.

The CPTPP is a free trade area that spans five continents and has a combined market of almost 600 million people. With the UK’s membership, the CPTPP will account for 15% of global GDP, giving the UK an opportunity to shape global trade and diplomacy in the region. This is a crucial development as the Asia-Pacific region is expected to largely define the century ahead.

The trade deal will benefit various sectors of the UK economy. British businesses, particularly exporters of goods like chocolate, machinery, gin, and whisky, are set to gain a significant boost. Dairy producers will also have better export opportunities to Canada, Chile, Mexico, and Japan. In turn, British consumers can expect cheaper imports of produce like kiwis from New Zealand, blueberries from Chile, and maple syrup from Canada.

Joining the CPTPP also means that British companies will be able to operate in the same manner as domestic companies in partner nations. This eliminates the need for them to establish local offices, streamlining operations and reducing costs.

This announcement comes at a time when the UK is seeking to reset its relations with the European Union. Prime Minister Keir Starmer is currently on a European tour to strengthen ties and explore new opportunities. While the UK is not looking to reverse Brexit or re-enter the single market or the customs union, Starmer aims to deepen links on various fronts, including science, technology, development, business, and culture. The hope is to develop a new treaty with Germany and other EU nations to boost trading relations.

In conclusion, joining the CPTPP is a significant milestone for the UK. It opens up new trade opportunities, eliminates tariffs, and boosts the economy. By becoming a member of this influential trade bloc, the UK can shape global trade and strengthen its position in the global economy. Additionally, efforts to reset relations with the EU demonstrate the UK’s commitment to forging new partnerships and leveraging its post-Brexit freedoms for mutual benefit.