CPTPP: Unlocking New Trade Horizons for the UK

On Sunday 16 July, the UK’s Business and Trade Secretary, Kemi Badenoch formally signed the treaty to accede to the CPTPP trade bloc, kickstarting the UK’s membership of a modern and ambitious trade deal spanning 12 economies across Asia, the Pacific, the Americas and now – thanks to the UK’s membership - Europe. Taken from GOV.UK website, the signing comes as a new UK government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country. Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion in 2021, by guaranteeing protections for investors.

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What Is The CPTPP?

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Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is a free trade agreement between 11 countries in the Asia-Pacific region. It is an updated version of the Trans-Pacific Partnership (TPP) that was originally negotiated by 12 countries, including the United States. However, the United States withdrew from the agreement in 2017, and the remaining 11 countries continued negotiations, resulting in the CPTPP.

The CPTPP aims to lower trade barriers, promote economic integration, and facilitate increased trade among member countries. It covers a wide range of areas, including goods, services, investment, intellectual property, and labor standards. The agreement includes provisions for tariff reductions, the removal of non-tariff barriers, and the harmonization of regulations to promote trade facilitation.

The 11 member countries of the CPTPP are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The agreement came into effect on December 30, 2018, after the ratification process was completed by at least six of the participating countries.

The CPTPP is seen by many as a significant trade agreement that opens up new opportunities for member countries and enhances economic cooperation in the Asia-Pacific region. It has the potential to shape regional trade dynamics and influence global trade rules.

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What Are The Benefits of the UK Joining?

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Aside from being hailed as the biggest trade deal since Brexit, the UK joining the CPTPP will reduce red tape for trade between Chile and the UK which will improve the business environment between the two countries. The UK's joining will also spark further investment and growth opportunities down the line.

The CPTPP includes provisions for tariff reductions, the elimination of non-tariff barriers, and the establishment of common rules and regulations. It also incorporates modern trade issues such as digital trade and e-commerce. By harmonizing trade practices and standards, the CPTPP aims to enhance market access, promote fair competition, and encourage economic growth among its member countries. Here at Rapid Pack, we are hoping in the not-too-distant future that this will bring cheaper international shipping costs especially to the CPTPP member countries.

The agreement also sets forth commitments related to areas such as market access for goods and services, intellectual property protection, government procurement, environmental standards, and labour rights. It also establishes mechanisms for dispute resolution and cooperation among member countries.

The CPTPP is seen as a significant trade agreement with the potential to shape regional trade dynamics and influence global trade rules. It provides opportunities for participating countries to expand their markets, attract foreign investment, and foster economic cooperation.

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