After years in the making, the UK is now set to officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by 15 December 2024.
The UK formally applied to join the CPTPP, one of the world’s largest free-trade areas in 2021, deepening trade ties with some of the fastest-growing markets in the world.
Peru has this week ratified the deal, providing the final green light needed for the agreement to come into force.
In 2021 when then Prime Minister Boris Johnson started the ball rolling on CPTPP membership, he said:
“One year after our departure from the EU we are forging new partnerships that will bring enormous economic benefits for the people of Britain.
“Applying to be the first new country to join the CPTPP demonstrates our ambition to do business on the best terms with our friends and partners all over the world and be an enthusiastic champion of global free trade.”
This monumental trade deal will see the UK become part of a vast free trade area that spans five continents and encompasses nearly 600 million people. Once the UK’s accession is complete, over 99% of current British goods exports to CPTPP members will be tariff-free, offering a massive boost to businesses looking to expand their reach into these lucrative markets.
With Japan, Singapore, Chile, New Zealand, Vietnam, and now Peru having ratified the UK’s accession, the path is clear for the agreement to take effect. This deal is not just about eliminating tariffs; it’s a strategic move that could inject around £2 billion annually into the UK economy by 2040.
As the first country to join the CPTPP since its inception, the UK is well-placed to influence the future direction of this major trade bloc, setting the stage for further economic gains and potential expansions in the coming years.
Other benefits of UK accession to CPTPP include:
- Less red tape for the UK’s world-class services
- Increased flexibility via modern ‘rules of origin’ for British goods
- Investment provisions which limit barriers
- Cheaper import prices thanks to reduced tariffs
Under the deal, over 99% of UK goods exports to CPTPP countries will face zero tariffs, including British whisky and cars.
Fantastic news! Also it means we can’t rejoin the EU which is good news.