Kemi Badenoch, the UK’s business and trade secretary, has signed the accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand.
This move marks Britain’s entry into the major Indo-Pacific trade bloc and brings British businesses closer to accessing a market of over half a billion people.
As the first new member and the first European nation to join the bloc since its formation in 2018, the UK secures its biggest trade deal since Brexit. The agreement will reduce tariffs for UK exporters to the 11 CPTPP member countries, including Australia, Canada, Japan, Mexico, and Singapore.
With the UK’s accession, the bloc’s combined GDP will amount to £12 trillion, representing 15% of global GDP.
The signing formalizes the agreement reached in March after two years of negotiations. The UK and other CPTPP members will now work towards ratifying the deal, with the expectation of it coming into force in the second half of 2024.
This will make the UK a voting member of the bloc, allowing businesses to benefit from the expanded trade opportunities.
Kemi Badenoch expressed her enthusiasm for the deal, highlighting the significant boost it will provide to British businesses and the opportunities it creates for trade with over 500 million people.
The UK’s accession to the CPTPP will deepen existing trade arrangements, with the majority of UK goods exports to the bloc eligible for zero tariffs.
Critics argue that the economic impact of the deal will be limited, estimating a contribution of only £1.8 billion annually to the economy after 10 years. However, supporters emphasize the benefits of accessing dynamic growth markets and the potential for increased trade opportunities.
The CPTPP is seen as an alternative to the World Trade Organization in an evolving global trading system. The UK’s formal entry into the bloc may pave the way for other potential new members, although applications from China and Taiwan are expected to raise tensions.
The trade deal is expected to result in lower prices for UK consumers on various everyday items from CPTPP nations, including Ugg boots from Australia, kiwi fruits from New Zealand, blueberries from Chile, and Canadian maple syrup.
Overall, the UK’s membership in the CPTPP signals its commitment to expanding international trade and building partnerships beyond Europe.
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