Comprehensive and Progressive Agreement for Trans-Pacific Partnership
The UK is now a fully integrated member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking the first European nation and non-founding member to join. This milestone strengthens the UK’s ties with Asia, the Americas, and Oceania. Effective immediately, the UK joins eight CPTPP partners: Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Malaysia, and Brunei, facilitating tariff reductions and regulatory adjustments, thus enhancing global trade conditions for British traders from December 2024.
Key Changes Post-CPTPP Membership:
- British firms can trade with CPTPP members under unified rules, simplifying processes and reducing previous complications.
- Australia joins the agreement on 24 December 2024, adding to the economic partnership.
- Canada and Mexico will follow after completing internal steps.
- Immediate tariff cuts ease access for British manufacturers, agricultural producers, and service providers, opening new markets.
Economic Impact of Joining CPTPP:
- Government forecasts long-term gains of £2 billion annually, with household wages rising by £1 billion.
- Easier market access boosts sales abroad, potentially benefiting local communities.
- Immediate benefits foster business growth, encouraging companies to explore new markets and partnerships across three continents.
Benefiting Sectors:
- Food and drink producers gain timely access to raw materials and fair export terms.
- Scotland, Wales, Northern Ireland, and English regions stand to gain millions from deeper trade ties.
- Service firms, employing most British workers, find fewer restrictions, simplifying deals in CPTPP nations and enhancing the UK’s global presence.
Please get in touch for an informal chat if you require any CPTPP related services.