The UK has formally applied to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) – one of the largest free-trade areas in the world.
The International Trade Secretary, Liz Truss, said membership would give UK businesses unrivalled access to some of the fastest-growing markets, including Japan, Mexico, Malaysia and Vietnam.
Here’s what you need to know about the CPTPP.
Why are we joining the partnership?
The latest statistics suggest that UK trade with CPTPP countries is already worth around £111 billion – up eight per cent since 2016.
But joining the £9 trillion partnership will cut tariffs for many UK industries, including tech, food and drink, and automotive, making products and services cheaper to import and export.
What are the benefits of joining?
- “Modern digital trade rules” that will remove unnecessary barriers for businesses and protect commercial source code and encryption
- The free flow of data between participating countries
- Eliminating tariffs quicker on UK exports
- Rules of Origin that allow content from any country within CPTPP to count as ‘originating’
- Easier travel between CPTPP countries and the potential for faster and cheaper visas
How does CPTPP and EU membership differ?
Unlike EU membership, membership to the CPTPP does not require the UK to give up control over its laws, borders or money.
What do the experts say about the deal?
Commenting on the report, Julian David, CEO of techUK, said: “Today marks an important step in the UK’s path to developing a modern trade policy that creates new opportunities for the UK tech sector. Building on our recent agreements with Japan and the European Union, the accession to the CPTPP will allow us to join a group of ambitious countries breaking the newest ground in digital trade.”
Welcoming the announcement, Mike Cherry, Federation of Small Businesses (FSB) Chair, added: “Membership of the CPTPP would be a hugely welcome development to all small businesses looking to either expand or begin their trading journeys.”
When will we join the CPTPP?
According to the International Trade Secretary, “formal negotiations” to join the market will “start this year”.
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