UK Government has revealed that it will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP) by 15th December 2024.
The UK has secured the sixth and final ratification required to trigger its accession to the CPTPP before the end of 2024, UK Government has announced.
CPTPP is a free trade area spanning five continents and almost 600 million people once the UK joins. Following Peru’s ratification of the UK’s deal to join the bloc, the agreement will now officially enter into force by 15th December 2024.
More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect, which Government said would help businesses export more to CPTPP markets and contribute to the Government’s priority of driving economic growth. It also said that by 2024, the agreement could boost the UK economy by around £2 billion annually.
Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will come into force with those members by 15th December, and subsequently with other members as they ratify.
Government said it would continue to work closely with the remaining member countries who are in the process of ratifying the deal, and highlighted that as the first country to accede to this agreement the UK will be “well-positioned to shape its future development”, from influencing the development of the CPTPP rulebook to “championing the group’s expansion to new economies”.
Establishing global supply chains
A spokesperson for the British Meat Processors Association (BMPA) said: “Peru’s ratification of the UK’s accession to the Trans-Pacific trade partnership is the final piece to fall into place and clear the way for the UK to join the CPTPP on 15th December 2024. This gives us tariff-free access for most goods into the 11-member trade group.
“For the meat industry, it certainly opens up some new opportunities, although we already have free trade agreements with many of the countries involved. But the main export focus will stay firmly on our nearest, biggest and most high-value market in Europe, where we can sell offal (a key component of meat exports and carcase balance) at near double the price of other markets in CPTPP countries.
“Perhaps the longer-term opportunity lies in countries that are not yet part of the trading block but may be admitted in the future. Of course, the ability to trade tariff-free is a two-way street, so one of the risks will be product coming the other way into the UK. We’ll be monitoring how these markets open up in the coming months and years.”
“In a world of growing geopolitical uncertainty, the expanding trading community of CPTPP nations offers an important counterpoint.”
Minister of State for Trade Policy, Douglas Alexander, said that the UK’s accession was “good news”.
He commented: “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.
“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.”
Marco Forgione, the director general of the Chartered Institute of Export & International Trade, said that “the ratification of CPTPP marks an important stage in the UK’s trading future”.
He said: “British businesses now have tariff free access to some of the fastest growing markets in the world to sell our goods and our world leading services. This is an opportunity which can help reshape the UK economy.
“At a time when global trade has been weaponised, this partnership can help the UK establish resilient and robust supply chains across Southeast Asia, Central and South America. In a world of growing geopolitical uncertainty, the expanding trading community of CPTPP nations offers an important counterpoint.
“Now CPTPP is ratified the real work begins to make sure businesses understand how to take advantage of the immense opportunities for UK services and goods in CPTPP nations. There is a great opportunity for UK businesses to grow.”
“Our industry needs robust domestic production, as well as a range of export markets and sources of imported supplies.”
A spokesperson for the International Meat Trade Association (IMTA) said: “At IMTA, we welcome the announcement of CPTPP coming into force from 15th December with the initial six ratifying partners. Whilst the TRQ benefits are good news, it is worth noting that not all CPTPP countries are yet veterinary approved for imports and exports of meat. As we always point out, the benefits of a free trade agreement cannot be realised without veterinary market access, tariff reductions cannot be utilised without it.
“It is also possible that in the short-term businesses may continue using existing bilateral Free Trade Agreements (FTAs) until CPTPP benefits fully materialise. We recognise, however that the UK’s accession is an important political step and CPTPP’s potential future expansion, given that other countries have already expressed an interest in joining may potentially open new horizons for the UK meat trade.
“We are supportive of the Governments’ intentions to expand into new markets for British meat exporters and most importantly the recognition that food security is core to national security. Our industry needs robust domestic production, as well as a range of export markets and sources of imported supplies.
“We believe that having access to new markets, via veterinary market access as well as FTAs can provide options for both our exports and imports and are ultimately in the best interests of UK producers and consumers. We look forward to supporting members pursuing new opportunities once the CPTPP is fully implemented, and any veterinary access that may be granted with new partners.”
