UK joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Last week, the UK government announced that the UK will join the Indo-Pacific trade block, the CPTPP.
The agreement follows two years of negotiations by the Department for Business and Trade and the UK is the first European member and first new member since CPTPP was created. The CPTPP includes 11 Pacific nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The bloc is home to more 500 million people and will be worth 15% of global GDP once the UK joins. It is estimated that joining will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels.
Being part of CPTPP could support jobs and economic growth across the country. More than 99 percent of UK goods exports to CPTPP countries will now be eligible for zero tariffs, including UK exports such as cheese, cars, chocolate, machinery, gin, and whisky.
Total UK exports to CPTPP countries were already worth £60.5 billion in the 12 months to the end of September 2022 and are set to grow under CPTPP. The services industry will also benefit from reduced red tape and greater access to growing Pacific markets with an appetite for high-quality UK products and services.
