- UK joins CPTPP: Britain becomes first new member and first European nation to join the trade bloc
- Boost for British businesses: Accession to CPTPP opens up opportunities in a market of 500 million people
- Trade benefits and future prospects: Reduced tariffs, expanded export opportunities, and potential tensions with China and Taiwan
Since its formation in 2018, Britain is the first new member and the first European nation to enter the bloc.
Kemi Badenoch has ratified the United Kingdom’s membership in a significant Indo-Pacific trade bloc.
The New Zealand business and trade secretary signed the CPTPP accession protocol Sunday.
The move brings British companies one step closer to selling to a market of 500 million individuals.
Since its formation in 2018, Britain is the first new member to join the bloc, which consists of Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The United Kingdom is also the first European nation to join.
It is Britain’s largest trade agreement since Brexit, reducing tariffs for UK exporters to a group of nations with a combined gross domestic product (GDP) of £12trn, or 15% of global GDP, according to officials.
After two years of negotiations, the agreement was reached in March, and the signing serves as its formal affirmation.
In the UK, ratification will require parliamentary supervision and legislation.
The UK will become a voting member and benefit firms in the second half of 2024, according to officials.
Before putting pen to paper in Auckland alongside ministers from CPTPP nations, Ms. Badenoch stated, “I’m delighted to be here in New Zealand to sign a deal that will be a huge boost for British businesses and deliver billions of pounds in additional trade, as well as open up enormous opportunities and unrivaled access to a market of over 500 million people.
“We are using our status as an independent trading nation to join a dynamic, expanding, and forward-looking trade bloc, which will help grow the UK economy and add to the hundreds of thousands of jobs already supported by CPTPP-owned businesses across the country.”
To coincide with the signing, the government released data indicating that CPTPP-headquartered companies employed one out of every 100 UK employees in 2019, totaling more than 400 thousand jobs across the nation.
While the United Kingdom already has trade agreements with all CPTPP members except Malaysia and Brunei, officials have stated that existing arrangements will be expanded so that 99.9% of UK exports to the bloc will be eligible for zero tariffs.
According to officials, dairy producers will have more export opportunities to Canada, Chile, Japan, and Mexico. While beef, pork, and poultry producers will have greater access to the Mexican market.
However, critics argue that the impact will be limited, with official estimates indicating that, after ten years. It will contribute less than 1% to the UK’s GDP, or £1.8 billion per year.
David Lammy branded the Tories’ claim that CPTPP inclusion would make up for lost European trade “dishonest.”
In an increasingly fragmented international trading system, officials laud the CPTPP as an alternative to the beleaguered World Trade Organisation.
HSBC chief executive Ian Stuart stated, “The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation, and technology.”
According to the Institute of Export and International Trade, Ugg footwear from Australia, kiwifruit from New Zealand, blueberries from Chile, and maple syrup from Canada are among the CPTPP-nation goods that will become less expensive for UK consumers as a result of the agreement.
After the UK’s admission, China and Taiwan’s applications may provoke issues.
