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
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