The UK has advanced a crucial phase towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as announced by Trade Policy Minister Greg Hands during a meeting in Arequipa, Peru. This early accomplishment highlights the UK’s dedication to expanding its trade reach.
Joining CPTPP, a trade bloc set to represent 15% of global GDP with the UK’s participation, allows over 99% of current UK goods exports to CPTPP members to benefit from tariff-free trade. Encompassing 500 million consumers across major economies, the agreement promises vast potential for increased trade.
Business and Trade Secretary Kemi Badenoch signed the deal last July, integrating the UK into a forward-looking trade pact that spans 12 economies across Asia, the Pacific, and Europe. CPTPP membership is expected to bolster jobs and economic growth across the UK, benefiting every region.
Six additional economies must ratify the agreement by October for it to take effect by the year’s end. Singapore, Japan, and Chile have already ratified, with others in progress.
During his two-day visit starting May 17, Minister Hands will also celebrate the completion of negotiations on a Double Taxation Agreement (DTA) with Peru. This agreement prevents businesses from being taxed twice, whether in Peru or the UK, reducing costs and providing certainty. It represents a significant win for businesses in both nations and is expected to boost bilateral trade and investment substantially.
Minister Greg Hands stated, “The UK has been racing to get our ratification done because we know how much CPTPP will benefit British businesses, whether through access to new markets or cutting red tape on existing exports. I’m delighted we were able to bring this forward, ahead of our original July forecast, so we can get the countdown to Entry into Force going as soon as possible.”
The UK aims to be an influential CPTPP member, actively engaging in meetings and discussions on the agreement’s future. Peru, a longstanding trading partner of the UK, saw bilateral trade worth £1.8 billion last year.
William Bain, Head of Trade Policy at the British Chambers of Commerce, commented, “There are few multi-national trade agreements like this one. The UK’s addition to this bloc will open up new opportunities for both inward and outward investment.
Trade rules will be more favourable for manufacturers looking to sell products to other member countries and data transfers for firms in the services sector will also be more straightforward.
“Crucially, it will also give the UK a say in the bloc’s future development, making it a deal that will work for our traders both now and in the future,” he added.
As the UK nears formalizing its CPTPP membership, the nation stands to gain significant economic advantages, strengthening trade relations and securing a robust presence in the global market.
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