As of Tuesday 1 September 2026, UK businesses have full access to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trading bloc.
On 15 December 2024, the UK officially joined the CPTPP. However, the UK did not have accession by all members until 1 September 2026.
The CPTPP is widely recognised as one of the world’s most progressive free trade agreements, providing free trade between member countries.
As such, it is worth understanding how your business may benefit from the new arrangement.
What are the benefits of being a part of the CPTPP trading bloc?
Now that Canada has given the go-ahead, the UK has access to all 11 CPTPP member countries with economies worth almost £10 trillion.
The CPTPP offers reduced tariffs on nearly 99 per cent of all goods amongst its 12 member countries. These countries include:
- Australia
- Brunei
- Canada
- Chile
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore
- The UK
- Vietnam
The agreement removes taxes on the vast majority of traded goods between countries, barring a few sensitive domestic sectors, such as Japanese rice.
It also changes the rules around the Rules of Origin, allowing manufacturers to source raw materials and parts from any CPTPP member countries and still qualify for tariff-free status.
Some rules are set to allow free cross-border data flows, prohibit forced local data storage and support electronic signatures.
These benefits are set to open up market access for financial services, accounting, air transport and professional mobility.
In the long run, the agreement is set to bring around £2 billion into the UK economy.
How can the CPTPP help British businesses?
Having full access to this trading bloc is set to be a big milestone for British businesses, giving them greater opportunities to export globally due to improved market access.
In a recent press release, Minister for Trade Anas Sarwar said: “With full access to the CPTPP, there are now new opportunities for British businesses across some of the world’s fastest-growing markets.
“Whether it’s selling our world-class food and drink or winning public contracts, we will continue to back British business to succeed across the world, driving growth and creating jobs across the country.”
For exporters, reduced tariffs can make British products more competitive overseas by lowering the cost of trade.
Lower tariffs mean UK businesses can sell goods into CPTPP countries more competitively, helping to reduce the costs associated with exporting and making British products more attractive to international customers.
The agreement also provides greater flexibility for businesses with international supply chains.
Under the Rules of Origin, manufacturers can source materials from other CPTPP members while still qualifying for preferential tariffs.
Simpler customs procedures and more transparent trading rules should also help businesses move goods across borders more efficiently, reducing some of the administrative burden associated with international trade.
The agreement also creates new opportunities for British businesses to compete for public contracts across CPTPP markets, opening up potential new sources of revenue.
Digital trade provisions, including support for cross-border data flows and electronic signatures, could make it easier for service-based businesses to operate internationally.
How can we help?
Now that the CPTPP trade deal is in force with all 12 countries, businesses need to review their tax plans to ensure that an international trade deal will fit into their overall tax plan.
We can help you ensure that your cross-border operations are tax efficient and that you are compliant with countries’ tax rules.
For expert advice on tax when trading internationally, get in touch with our team.