The UK officially became the 12th member of the trans-Pacific trade pact (CPTPP) yesterday, joining countries like Japan, Australia, and Canada. This move aims to strengthen the UK’s trade ties in the Asia-Pacific region and boost global trade connections after Brexit.
Last year, the UK announced its decision to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking its biggest trade deal since leaving the EU.
With this accession, the UK can now apply CPTPP trade rules and lower tariffs with eight of the 11 current members – Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam. The deal with Australia will take effect next Tuesday, while agreements with Canada and Mexico will begin 60 days after they ratify it.
For the first time, the UK will have free-trade deals with Malaysia and Brunei. While it already had deals with the other members, CPTPP offers more flexible “rules of origin” provisions.
Unlike the EU, CPTPP does not require regulatory harmonization. The UK expects the deal to boost its economy by £2 billion (US$2.5 billion) annually in the long term – a small but notable 0.1% of GDP.
