This has made the UK a member of a modern and ambitious trading bloc, comprising 12 economies across the Asia-Pacific region and now Europe.
Delegates at the signing ceremony. Photo: British Foreign Office
Minister Kemi Badenoch is in Auckland with New Zealand Trade Minister Damien O'Connor, Vietnam's Minister of Industry and Trade Nguyen Hong Dien, Canada's Trade Minister Mary Ng, Japan's Economic Revitalization Minister Goto Shigeyuki and Australia's Deputy Trade Minister Tim Ayres to sign the landmark agreement.
The signing is formal confirmation of the UK’s agreement to join the trade bloc, following substantial negotiations earlier this year. The UK government will now take the necessary steps to ratify the agreement, including parliamentary scrutiny, while other CPTPP member states complete their domestic legislation.
The signing comes as the UK government released a new report showing that in 2019, one in 100 British workers worked for businesses owned by the CPTPP bloc, equivalent to more than 400,000 jobs across the UK.
UK Business and Trade Secretary Kemi Badenoch speaks at the signing ceremony. Photo: UK Foreign Office
UK Business and Trade Secretary Kemi Badenoch at the signing ceremony. Photo: UK Foreign Office
Scene of the signing ceremony. Photo: British Foreign Office
CPTPP businesses have demonstrated huge economic potential, accounting for just 0.3% of all businesses in the UK, but they generate 6.1% of total UK turnover, 20 times higher than the proportion of businesses they represent.
CPTPP membership is expected to boost investment in the UK from CPTPP member states, already worth £182 billion in 2021, by ensuring protections for investors.
Speaking ahead of the signing ceremony, Minister Badenoch said: “I am delighted to be in New Zealand to sign an agreement that will be a huge boost for British businesses and add billions of pounds to trade, while opening up huge opportunities and unprecedented access to a market of over 500 million people.
We are using our position as an independent trading nation to join a dynamic, growing and forward-looking trading bloc that will boost the UK economy and create hundreds of thousands of jobs from CPTPP-owned businesses already operating at home and abroad."
British Ambassador to Vietnam, Iain Frew, expressed his delight that the UK had signed the agreement to join the CPTPP, and thanked the Vietnamese Government for its support and cooperation during the accession process.
According to British Ambassador to Vietnam Iain Frew, total trade turnover between the UK and Vietnam recently reached 6.9 billion pounds, up 29% compared to last year. He believes that the UK's accession to the CPTPP will further boost bilateral trade growth. Joining the CPTPP demonstrates the UK's strategic commitment to the Indo-Pacific region. He thanked the Vietnamese Government for its support and cooperation during the accession process.
The UK is the first European member and the first new member since the CPTPP was created, something the UK could not have done if it had remained in the European Union. With the UK joining, the CPTPP would have a combined GDP of £12 trillion and account for 15% of global GDP.
The UK government will take the necessary steps to bring the agreement into force, expected next year.
Being part of the CPTPP means that over 99% of current UK exports to CPTPP countries will qualify for zero tariffs.
The deal is a gateway to the vast Indo-Pacific region, which will account for much of global growth and around half of the world’s middle-class consumers in the coming decades, bringing new opportunities for British businesses as well as supporting jobs.
Vietnamese Minister of Industry and Trade Nguyen Hong Dien at the signing ceremony. Photo: UK Foreign Office
Chairman of the British Chamber of Commerce in Vietnam, Chris Jeffery, said that with the existing UK-Vietnam Free Trade Agreement (UKVFTA) and now joining the CPTPP opening up even more business opportunities for both Vietnam and the UK, the opportunities for British businesses in Vietnam are now among the best in the world.
“We are confident that bilateral trade will continue to grow rapidly, with UK businesses now having a wealth of opportunities to take full advantage of the UK’s focus on developing relationships and links with Asia.”
Some images provided by the UK Foreign Office of this event:
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