More than $2 billion boost to growth as UK joins CPTPP

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The CPTPP is a major trade bloc whose members - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK – have a combined GDP of £12 trillion ($15.2 trillion).

Businesses across the country will face lower tariffs and fewer barriers when selling to economies across three continents, with the financial services, manufacturing, and food and drink sectors in particular set to benefit, helping to support the UK government’s Plan for Change by boosting household wages by £1 billion ($1.3 billion) every year and delivering on one of the five missions of kickstarting economic growth.

The UK's business and trade secretary Jonathan Reynolds said, "Britain is uniquely placed to take advantage of exciting new markets, while strengthening existing relationships. The news is further proof that the UK is a wonderful place to do business, with an open, outward looking economy driving the growth people can feel in their communities."

"Agreements like this boost trade and create opportunities for UK companies abroad. This is a proven way to support jobs, raise wages, and drive investment across the country, which is key to this government’s mission to deliver economic growth. Our trade strategy, published next year, will finally put in place a long-term, strategic plan for international trade that helps businesses and consumers and, ultimately, grows the economy," he added.

The CPTPP is designed to expand over time, further growing the economic and strategic benefits of the agreement. Costa Rica was recently announced as the next country to go through the process of joining, and other economies such as Indonesia – the largest economy in Southeast Asia, with a GDP of over £1 trillion ($1.3 trillion) and home to around 280 million people – have already expressed an eagerness to join the bloc.

Sectors like automotive and food and drink will be able to benefit from membership, including through modern 'rules of origin' provisions which allow goods to qualify for lower tariffs when built from parts from CPTPP countries then exported to another member country. For example, a UK car engine manufacturer using components from other CPTPP countries could more easily qualify for lower tariffs when exporting the final engine within the bloc.

UK services firms, which employ over 80 per cent of our workforce, could also find it easier to export their services to member countries, with firms allowed to manage funds across the world from the UK and provide services to CPTPP markets on a level playing field with domestic firms in key sectors.

Prices on consumer goods could also fall if savings are passed on by importers, with tariffs removed on items like fruit juices from Peru and vacuum cleaners from Malaysia.

Through the CPTPP, the UK now has free trade deals with Malaysia and Brunei for the first time, economies with a combined GDP of over £330 billion ($417.9) last year.

The CPTPP comes into force as the UK edges closer to securing trade deals with partners such as the Gulf Cooperation Council, India, Switzerland, and South Korea. These form one half of the current UK government’s twin-track approach to trade, which seeks to reset its relationship with the EU while striking new trade deals elsewhere.

UK to join CPTPP in December The United Kingdom has secured the sixth and final ratification required to trigger its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) before the end of this year.

Vietnam hopeful to benefit from UK’s pacific deal entry Vietnam and the United Kingdom will soon have another tool for amplifying their trade and investment following Britain’s upcoming ratification of a mega multilateral trade deal.

UK on way to joining key trans-pacific pact Vietnam and the United Kingdom are poised to expand their trade and investment ties following Vietnam’s official endorsement of the UK’s access to a major multilateral trade deal.