UK seals deal to join CPTPP by end of year

The UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by 15 December after securing the final ratification needed to trigger its accession.

Set up in 2018, the CPTPP has 11 members – Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – which jointly account for around 12% of global GDP.

In July 2023, the UK formally agreed to become the bloc’s 12^th member, with entry into force dependent upon the ratification of the agreement by six existing CPTPP countries – a milestone achieved on 23 August when Peru became the latest to give its legal confirmation to the deal.

More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect, which the UK government says could bolster the country's economy by as much as £2bn each year by 2040. Being part of the CPTPP also means that the UK and Malaysia will benefit from a trade deal for the first time.

"This is good news for UK businesses, who are now one step closer to being able to take advantage of the opportunities our membership of CPTPP will bring," says Douglas Alexander, the UK's minister of state for trade policy.

"My message to businesses is to get in touch with the Department for Business and Trade to find out how CPTPP could benefit your business, if you haven't already."

Organisations commenting on the development include the British Chamber of Commerce in Japan (BCCJ). In a LinkedIn post published 30 August, it describes the news as "a significant development for BCCJ members and the wider UK-Japan relationship, as it further strengthens economic ties and opens up new avenues for trade and collaboration."

The agreement will be subject to a phased implementation, applying only to those parties which have ratified the UK's accession. The UK government says it continues to "work closely" with the remaining member countries who are in the process of ratifying the deal.

“We're extremely grateful to all the CPTPP partners that have already ratified our accession – Japan, Singapore, Chile, New Zealand, Vietnam and now Peru – and look forward to more doing so over the coming months,” says Alexander.