The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

As of 15th December last year, the UK became the first European member with 11 other partners including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

The joining of the trade bloc has been marked as a ‘red letter day’ by commentators, with the Head of Trade Policy at the British Chambers of Commerce, William Bain, noting: “There are few multi-national trade agreements like this one. It connects us to a fast-growing region of the global economy and will create new opportunities for both inward and outbound investment.”

The CPTPP trading bloc accounts for 15% of global economic output in a fast-growing region, with the deal expected to offer opportunities for UK SMEs to take advantage of reduced costs to import components and export manufactured goods. 

Membership is expected to deliver a number of benefits for the UK and its businesses. Alongside a say in how the bloc develops and strengthens ties with growing economies, it will also open new markets for service providers, help diversify supply chains, and cut tariffs on goods exports. The deal is expected to deliver a £2bn boost to the UK economy each year. 

There is particular interest in the opportunities to do more business with Vietnam and Malaysia, with Jennifer Lopez – CEO of the British Malaysian Chamber of Commerce – saying: “The entry-into-force of the UK’s membership into the CPTPP marks a groundbreaking achievement, transforming trade relationship and unlocking exciting opportunities for businesses in the UK and Malaysia.  

“As this is the first-ever free trade agreement between Malaysia and the UK, it is a historic moment in elevating the longstanding partnership between our nations. It paves the way for collaboration in emerging sectors like digital trade, green technology, and advanced manufacturing.”

Capitalise on emerging markets

If you’ve spotted a potential opportunity to increase trade within the CPTPP bloc, Go Exporting can help make that a reality. 

We have the experience and expertise to support you through the process from start to finish, from initial market research and entry strategy, through to customs and compliance, finding distributors, and driving sales. 

Learn more about our international trade consultancy here.

UK exporters are facing an uphill battle right now as the latest available data for Q3 2024 showed steep declines in export volumes. 

Data from the ONS showed a near 10% month-on-month decline in UK goods exports in September alone, which included a 10.9% fall in EU goods exports. Outside the EU, volumes fell by 8.7%. 

A fall in machinery and transport equipment, fuel and chemical sales were noted as primary sources of decline. 

Goods imported also fell but by a smaller amount, 3.1% overall including 1.4% from the EU.

Services bucked the trend somewhat with a 0.5% real-terms increase in activity, though the value of those exports is expected to have contracted slightly. 

In terms of value, goods exported fell by £3.4bn following a rise in August, and the total goods and services trade deficit widened by £1.5bn to £11.4bn in Q3. 

Head of Trade Policy at the BCC, William Bain, said of the latest figures that: “The UK’s broader economic slowdown in the third quarter of the year is clearly reflected in the trade data. September’s export data reflected the continued volatility in goods, in the last few months, with a further large drop in UK exports across the world.  

“Taking Q3 overall, both goods and services exports fell, which is a real concern. There seems little sign so far of the uplift in global trade which economic forecasters predicted for the second half of 2024. 

“The data points to the need for the Government’s promised Trade Strategy to deliver durable improvements in export performance and for stronger support measures to raise sales in key markets.  

“It must also look at removing non-tariff trade barriers with the EU, and strong implementation of new trade deals with fast-growing markets. A concerted effort is needed to create the conditions so businesses can generate fresh exports.”

There was some better news in October’s trade data with Uk services export volume rising 2.5%.

Grow through the growing pains

It’s been a painful trading period for a number of exporters, but firms that are bold enough to grow through the growing pains are finding opportunities and seeing sales grow. 

The key is to be strategic with growth plans, and only invest where real market potential exists. 

Go Exporting specialises in helping companies to expand in international markets profitably; from export readiness, customs and compliance and market research through to devising and implementing strategy. 

Learn more about our exporting growth plans here.