RED-LETTER DAY AS ASIA-PACIFIC TRADE DEAL STARTS

16th December 2024

William Bain, Head of Trade Policy at the BCC, reacts to the UK formally joining the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) today

Reacting to the UK formally joining the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) today, William Bain, Head of Trade Policy at the BCC, said:? 

“This is a red-letter day for our traders.?There are?few multi-national trade agreements like this one.  It connects us to a fast-growing region of the global economy and will?create new opportunities?for?both inward and outbound investment.?????? 

“Trade rules will be more favourable for manufacturers looking to sell products to other member countries and data transfers for firms in the services sector will also be more straightforward.??? 

“Crucially, it will also give the UK a say in the bloc’s future development, making it a deal that will work for our traders both now and in the future 

“We look forward to working with the UK Government, and others, to ensure firms get the best possible access to this thriving market within the global trade system.”? 

The addition of the UK to the CPTPP trading bloc takes it to 12 countries which account for 15% of global economic output.?Eight of the 11 other members have already ratified the UK’s accession, and its terms will now come into force with them, and with Australia from Christmas Eve. 

The UK already has bilateral trading agreements with nine of the 11 members, but no prior agreements with Malaysia and Brunei, providing new opportunities in these markets.??? 

The deal also offers advantages for small and medium sized businesses in reduced costs to import components from member countries to use in manufactured goods for export.?? 

And it has generous terms for data flows which underpin an increasing part of international trade.? 

The official start of the deal has also been welcomed by British Chambers of Commerce in the region.

David Kelly, Executive Director of the British Chamber of Commerce Singapore, said: 

"The UK’s accession to the CPTPP underscores its commitment to strengthening international trade frameworks and its role as a proactive and collaborative partner within the global trading system. 

"This development opens new opportunities for businesses across the CPTPP bloc to diversify supply chains, advance trade in services, and embrace digital and green economy initiatives.  

“The British Chamber of Commerce Singapore remains committed to supporting businesses in navigating new opportunities presented by the UK’s CPTPP membership and advancing the shared ambitions of this transformative trade agreement.”

Ticky Fullerton, CEO of the Australian British Chamber of Commerce, said: 

"The United Kingdom’s membership of the CPTPP is great news for all who support free trade and economic security in our region. At a time of some uncertainty in global trade, the UK’s reputation and influence is a powerful endorsement of the CPTPP and its aspiration to facilitate prosperity and security through new trade opportunities and increasingly high standards.

“The CPTPP’s UK membership is a strong fillip for our Chamber’s work supporting the UK and Australian Governments and our members on trade and investment."  

Philip Wood, President of the British New Zealand Business Association, said: 

“The UK joining the CPTPP is another positive development in its trade relationship with New Zealand, following the entry into force of the UK-New Zealand Free Trade Agreement in May 2023. The Indo-Pacific region is a key area for New Zealand and the increased focus of the UK on this area of the world is very welcome in terms of the increased economic activity that it will create and also in terms of facing up to some of the major challenges in the region such as climate change.”?? 

Matt Ryland, Executive Director of the British Chamber of Commerce Vietnam, said: 

"With CPTPP coming into force, this gives UK exporters more options, increased tariff reductions and more viable markets. With an expected GDP of 7% in 2024, a target for 8% in 2025 and a fast-growing middle class,  

“Vietnam is one market I am sure will garner huge interest from UK companies and we are here to drive and support that growth.” 

Jennifer Lopez, CEO of the British Malaysian Chamber of Commerce, said: 

“The entry-into-force of the UK’s membership into the CPTPP marks a groundbreaking achievement, transforming trade relationship and unlocking exciting opportunities for businesses in the UK and Malaysia. 

“As this is the first ever free trade agreement between Malaysia and the UK, it is a historic moment in elevating the longstanding partnership between our nations. It paves the way for collaboration in emerging sectors like digital trade, green technology, and advanced manufacturing.”