UK officially joins CPTPP

The UK officially became the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Sunday, marking a significant step in its post-Brexit global trade strategy.

The accession allows Britain to apply CPTPP trade rules and lower tariffs with eight of the 11 existing members, including Japan, Australia, and Canada, from Sunday. The agreement will enter into force with Australia on Dec. 24 and with Canada and Mexico 60 days after ratification.

This marks Britain’s first free trade deals with Malaysia and Brunei, while extending and enhancing existing agreements with other members. The CPTPP is expected to generate £2 billion annually for Britain, or less than 0.1 per cent of its GDP.

Additionally, the pact gives Britain a say in whether China and Taiwan can join, highlighting its strategic significance beyond economic ties. The agreement evolved from the US-backed Trans-Pacific Partnership, which was reshaped after the US withdrawal in 2017.

CPTPP is a vast free trade area consisting of 12 sovereign countries spanning the Asia Pacific and the Americas, and now the UK.
It is seen as a gateway to the wider Indo-Pacific region, which will account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come.

Attribution: Reuters & UK Government statement

Subediting: Y.Yasser