The UK has received the sixth and final ratification needed for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to enter into force with the UK, the UK government has announced. The CPTPP is a free trade area spanning five continents and nearly 600 million people after the UK joined. After Peru ratifies the UK's accession agreement, the agreement will enter into force on December 15, 2024.
More than 99% of current UK exports to CPTPP members will be tariff-free once the deal comes into effect, helping businesses export more to CPTPP markets and contributing to the government’s priority of boosting economic growth. By 2040, the deal could boost the UK economy by around £2 billion a year.
Peru joins five other CPTPP members who have ratified the UK’s terms of accession, including Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will enter into force for those members and the UK on 15 December. As the first country to join the CPTPP, the UK will be well placed to shape its future development, from influencing the shaping of CPTPP guidelines to advocating for the group’s expansion into new economies. This is good news for UK businesses, who are now one step closer to being able to take advantage of the opportunities that CPTPP membership will bring, said Trade Policy Minister Douglas Alexander.
A spokesperson for the British Meat Processors Association (BMPA) said Peru’s ratification of the protocol for the UK to join the CPTPP was the final step towards finalisation and paving the way for the UK to join the CPTPP on 15 December 2024. This would give businesses tariff-free access to most goods within the 11-member trading group. For the meat industry, this would certainly open up some new opportunities, although the UK already has free trade agreements with many of the participating countries. But the main export focus would remain on the nearest, largest and highest-value market in Europe, where offal (a major component of meat exports and carcass balance) can be sold for almost double the price of other markets in CPTPP countries. Perhaps the longer-term opportunities lie in countries that are not yet members of the trading bloc but could be accepted in the future. Of course, the ability to trade duty free is a two-way street, so one of the risks would be that the product goes the other way into the UK.
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Marco Forgione, director general of the Chartered Institute of Export and International Trade, said: “The ratification of the CPTPP marks a significant milestone in the UK’s trading future. British businesses now have tariff-free access to some of the world’s fastest-growing markets to sell their world-leading goods and services. This is an opportunity that could help reshape the UK economy. At a time when global trade is being weaponised, this partnership could help the UK establish strong and sustainable supply chains across South East Asia, Central and South America. In a world of increasing geopolitical uncertainty, the expanding trading community of CPTPP countries offers a significant opportunity. Now that the CPTPP has been ratified, the real work begins to ensure businesses understand how to take advantage of the huge opportunities for UK goods and services in CPTPP countries.”
It is also likely that in the short term, businesses may continue to use existing bilateral Free Trade Agreements (FTAs) until the benefits of the CPTPP are fully realised. However, businesses recognise that UK accession is a significant political step and that the future expansion of the CPTPP, with other countries already expressing an interest in joining, could open up new horizons for UK trade. Access to new markets through FTAs could provide options for both exporting and importing and is ultimately in the best interests of producers and consumers.
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