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Posted: Mon 16th Dec 2024
The UK has become the first European nation to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade bloc including Japan, Australia, Vietnam, Malaysia and New Zealand.
Negotiations for the UK to join CPTPP first began in 2021 with the treaty signed by the former government last July.
On Sunday, the agreement entered into force between the UK and members who ratified its accession first: Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam.
It will start with Australia on 24 December, and with Canada and Mexico 60 days after they each ratify the agreement.
Together, the CPTPP countries have a combined GDP of £12 trillion and are home to more than half a billion people. The UK government says the deal could potentially boost the country's economy by £2 billion a year in the long run. This equates to around 0.08% of UK GDP.
As a result of the agreement, 99% of UK goods exported to CPTPP member countries are eligible for zero tariffs, and UK services firms could also find it easier to export their services.
CPTPP is expected to expand over time, with Costa Rica recently announced as the next country to go through the process of joining.
Business and trade secretary Jonathan Reynolds said:
"Britain is uniquely placed to take advantage of exciting new markets, while strengthening existing relationships. Today's 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."
