Asia-Pacific trade bloc deal a boost for export prospects
BUSINESS and Trade Secretary Kemi Badenoch formally signed the treaty to accede to the Comprehensive and Progressive Agreement on Trans-Pacific Partnership (CPTPP) in New Zealand on July 16.
The CPTPP is a trade group that spans 12 economies across Asia, the Pacific, and with the UK’s addition, now Europe.
The Secretary of State signed the deal in Auckland, alongside New Zealand Trade Minister Damien O’Connor, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalisation Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.
The signature is the formal confirmation of agreement for the UK to join the group, following substantial conclusion of negotiations earlier this year. The UK Government will now seek to ratify the agreement, which will include parliamentary scrutiny, whilst other CPTPP countries complete their own legislative processes.
The signing comes as a new government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country.
Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion in 2021, by guaranteeing protections for investors.
Reacting to the signing of the Accession Protocol, paving the way for the UK’s accession to the CPTPP in 2024, William Bain, Head of Trade Policy at the BCC, said: “The forthcoming addition of the UK to this trading bloc takes it to 12 countries which accounts for 15% of global economic output.
“It will open up new opportunities for our businesses in both inward and external investment with the other 11 countries from the second half of next year.
“The UK has bilateral trading terms negotiated with nine of the 11 current members, but no agreements had been reached with Malaysia and Brunei, so the new terms will be of particular interest for traders in these markets.
“There are not many multi-national trade agreements like this one, and it offers new prospects in a fast-growing region of the global economy.
“We see particular relevance for small and medium sized businesses in reduced costs to import components from member countries to use in manufactured goods for export.
“There are also generous terms for data flows which underpin an increasing part of international trade.
“We will be scrutinising the Accession Protocol in detail on its publication in the next few days. But accession will be good news for UK businesses to enter or upscale their trade in these markets, with increased confidence and more generous trading terms.
“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 Chamber’s External Affairs Director, David Hooper, said: “Some of our best exporters in the Humber operate in these key markets and will welcome the potential increase in trade and reduced costs between the signatory nations of this trade deal.
“It’s also a good opportunity for firms who don’t currently operate in these growing markets to explore what new possibilities there might be to expand or source new suppliers.”
