The UK has, earlier than expected, completed its key step
required for joining CPTPP, Minister for Trade Policy will tell fellow members of the
group during a meeting in Arequipa, Peru.
Joining CPTPP – which will account for 15% of global GDP with the
UK included – means over 99% of current UK goods exports to CPTPP
members will be eligible for tariff-free trade. Encompassing 500
million consumers in some of the world's largest current and
future economies, the potential for increased trade is
huge.
Business and Trade Secretary signed the deal last July to
join the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), a modern, ambitious trade pact
spanning 12 economies across Asia, the Pacific, and now Europe.
Being part of CPTPP will support jobs and economic growth across
the country, with every nation and region expected to
benefit.
Only six economies, in addition to the UK, need to ratify by
October for the deal to enter into force by the end of the year.
Singapore, Japan, and Chile have already ratified, with other
countries in the works.
During a two-day visit which kicks off today [17 May], Minister
Hands will also welcome the conclusion of negotiations on a
Double Taxation Agreement (DTA) which will protect businesses
from being taxed twice – once in Peru and again in the UK, or
vice versa. Reducing costs and providing certainty, it is a
major win for businesses in both countries and will provide
opportunities for substantial increases in bilateral trade and
investment.
Minister for Trade Policy said:
The UK has been racing to get our ratification done because we
know how much CPTPP will benefit British businesses, whether
through access to new markets or cutting red tape on existing
exports.
I'm delighted we were able to bring this forward, ahead of our
original July forecast, so we can get the countdown to Entry into
Force going as soon as possible.”
The UK intends to be an influential member of CPTPP, making its
voice heard on all key matters, and is already involved in
meetings and discussions with CPTPP Parties on the future of the
agreement. Peru, a member of the bloc, is a longstanding trading
partner for the UK, with bilateral trade worth £1.8 billion last
year.
, Head of Trade Policy at the
British Chambers of Commerce, said:
There are few multi-national trade agreements like this one. The
UK's addition to this bloc will open up new opportunities for
both inward and outward 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.”
Marco Forgione, Director General of the Institute of
Export & International Trade said:
The ratification of CPTPP marks an important stage in the UK's
trading future. British businesses now have tariff free access to
some of 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 geo-political 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.”
Miles Celic, Chief Executive Officer, TheCityUK
said:
The UK's ratification of the CPTPP is another major milestone in
the journey to finalising this strategically important deal.
Britain will not only benefit from better access to some of the
world's fastest growing economies, it will also be able to help
shape the future direction of a group which is increasingly
important for the future of the global economy.”
Other benefits of UK accession to CPTPP include:
- Less red tape for the UK's world-class services
- Increased flexibility via modern ‘rules of origin' for
British goods
- Investment provisions which limit barriers
- Cheaper import prices thanks to reduced tariffs
Background
- The UK is announcing ratification of the terms of our
agreement to join the CPTPP.
- This follows depositing our instrument of accession with New
Zealand as depositary earlier this week to accept our Accession
Protocol signed last year; the treaty that sets out the terms and
conditions of accession of the UK to the CPTPP.
- This step follows the Trade (CPTPP) Act receiving Royal
Assent in March. Entry into force is expected later this
year.
Sources used in this press release:
