UK Seals Massive Trade Win with CPTPP Deal
Prime Minister Rishi Sunak has secured the UK’s biggest post-Brexit trade breakthrough by joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This colossal trade bloc spans 11 countries across the Indo-Pacific and boasts a staggering £11 trillion GDP.
What Joining CPTPP Means for Britain
- The alliance covers over 500 million people and will represent 15% of global GDP with the UK on board.
- More than 99% of UK exports to CPTPP countries, including iconic British goods like cheese, whisky, gin, cars, and chocolate, will see zero tariffs.
- UK exports to this region hit £60.5 billion last year and are set to soar under CPTPP membership.
- Services, which make up 43% of trade with CPTPP nations, will benefit from slashed red tape and improved market access.
Sunak’s Take: A New Era of Trade Freedom
“We are at our heart an open and free-trading nation, and this deal shows the real power of our post-Brexit freedoms,” Sunak declared. “As the first European and first new member of CPTPP, British businesses now have unparalleled access to booming markets from Europe to the Pacific.”
Boosting Jobs, Growth, and Global Reach
After 21 months of tough negotiations capped by a crucial meeting in Vietnam, the UK became the newest CPTPP member—its first European country.
The deal safeguards key UK sectors including agriculture and the NHS, maintaining high animal welfare and food safety standards. Dairy farmers, for instance, will enjoy lower tariffs exporting cheese and butter to Canada, Japan, Chile, and Mexico.
Business Secretary Kemi Badenoch highlighted the broader impact: “This sends a clear signal that the UK is open for business, poised to tap into the fastest growing markets and create opportunities nationwide.”
Why CPTPP Is a Game-Changer
- Modern Rules: New ‘rules of origin’ boost competitiveness, letting UK car parts move tariff-free through the bloc and supporting complex supply chains.
- Pro-Investment: The agreement cuts investment barriers, encouraging billions in inward UK investment from CPTPP partners.
- Digital Trade Boost: UK’s £20.5 billion remotely delivered services get easier access to these booming markets thanks to progressive digital trade rules.
- New Markets: The UK now has a free trade deal with Malaysia for the first time, slashing tariffs on whisky by 80% and cars by 30%, opening lucrative new avenues.
Industry Cheers UK CPTPP Membership
“Joining CPTPP is a milestone for British business, unlocking fast-growth economies and 500 million new consumers,” said CBI’s Matthew Fell. “It strengthens UK ties in an increasingly fractured world.”
Saif Malik of Standard Chartered added: “Tariff cuts, modern standards, and access to dynamic markets make this a huge win for UK firms.”
Pernod Ricard’s Anishka Jelicich praised the deal too: “Scotch whisky stands to benefit massively, with exports and jobs set to double in key CPTPP markets.”
The UK and CPTPP members will finalise the legal steps for full UK accession in 2023, marking a bold step in Britain’s global trade journey.
