UK Strikes Deal to Join £11 Trillion Indo-Pacific Trade Bloc
The UK has just sealed a massive trade deal to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a mega trade bloc in the Indo-Pacific worth £11 trillion in GDP once the UK is in.
Scottish Businesses Poised for a Boom
- Over 800 Scottish businesses already exported £2.1 billion to CPTPP countries in 2021.
- Scottish firms, start-ups, and farmers will gain fresh access to booming markets with fast-growing middle classes.
- Key exports like whisky, textiles, and produce stand to benefit hugely from tariff cuts, with 99% of UK goods exports to CPTPP countries set for zero tariffs.
Prime Minister Rishi Sunak hailed the deal as a major win for free trade and post-Brexit Britain:
“We are at our heart an open and free-trading nation, and this deal shows the economic wins of our post-Brexit freedoms. As the first new and European country to join the CPTPP, UK businesses now get unrivalled access to markets stretching from Europe to the South Pacific.”
Trade Boost and Job Gains Across the UK
Business and Trade Secretary Kemi Badenoch said the move sends a “powerful signal” that the UK is ready to expand globally and grow the economy, supporting jobs and companies of all sizes across the nation.
The Government estimates that joining CPTPP could pump an extra £1.8 billion into the UK economy and boost exports by £1.7 billion by slashing trade barriers on goods and services.
Scottish Companies Ready to Cash In
Malcolm Offord, Scottish minister, said: “This deal cuts red tape on whisky, textiles, and produce – unlocking new markets and global demand for Scottish goods.”
For example, whisky exports to CPTPP markets topped £1.1 billion in 2022. Tariffs of about 80% on whisky heading to Malaysia will be removed gradually over 16 years, opening huge opportunities for Scottish distillers.
Anishka Jelicich from Pernod Ricard UK added: “This is a big chance for Scotch whisky. Five of our top 20 export markets are in CPTPP. Tariff cuts and smoother access will help us double sales and secure UK jobs and investment.”
Tech companies like Edinburgh’s Cyacomb are also eyeing growth. CEO Ian Stevenson said the deal eases trade headaches, letting them focus on scaling exports to Canada, Australia, and Singapore.
Meanwhile, Livingston-based CessCon Decom, which handles offshore oil & gas recycling in Brunei, is set to deepen ties once both countries ratify CPTPP. CEO Lee Hanlon called the opportunities “exciting” for expanding beyond EU limits.
Gateway to Global Growth
The Indo-Pacific region holds 60% of the world’s population and will generate over half of global economic growth and middle-class expansion in coming decades.
By joining CPTPP, the UK positions itself at the centre of future-focused industries like digital, data, and services while championing free trade on the global stage.
The UK and CPTPP are now completing the final steps for formal signing later in 2023. This is a massive moment for British trade and the Scottish economy alike.
