Leaving the EU has allowed us to develop an independent trade policy and forge closer economic and diplomatic ties with the world’s fastest growing economies.
After 21 months of negotiations, we have signed the biggest trade deal since Brexit – becoming the first European country to join the CPTPP bloc, now worth £11 trillion. With 500 million people, trade with CPTPP countries will boost our economy by billions and support thousands of new jobs.
This deal will benefit businesses of all sizes, in all corners of our United Kingdom and help deliver on our promise to grow the economy.
Joining CPTPP will help grow the UK economy by:
- Boosting UK exports to CPTPP by reducing trade barriers, cutting tariffs, and increasing our market access to some of the world’s largest and fastest growing markets. More than 99 per cent of goods exports will be eligible for zero tariffs under CPTPP which makes it easier for UK firms to sell to CPTPP countries.
- Building a gateway to the wider Indo-Pacific region which will drive global economic growth and technological innovation. Spanning the Asia Pacific and Americas, CPTPP is a gateway to the wider Indo-Pacific region, which will account for more than half of global economic growth, compared to a quarter from the EU and North America combined.
- Opening up new markets and slashing red tape for UK service providers. CPTPP is one of the most modern trade agreements in the world, with ambitious services provisions that are ideally suited to our economy as the world’s second largest service provider. Red tape will be slashed and UK businesses will be operating on a par with local firms, bringing new benefits to UK businesses like greater certainty around licensing procedures and ensuring independent and impartial regulators.
The UK will maintain our high standards as a member of CPTPP and play a larger role shaping global standards:
- We have protected our high standards across the board – healthcare, the environment, animal welfare and food standards are all protected by our deal. We have been clear that our trade deals will never lead to lower quality standards. All food and drink products imported into the UK will still have to meet the respective food safety and biosecurity standards for the UK. The CPTPP includes comprehensive chapters for environmental protections, anti-corruption and improving workers’ rights.
- The CPTPP is a growing partnership in which the UK will have a strong voice, allowing us to shape the bloc in line with our geostrategic and trade interests. As the second largest economy in the CPTPP, we will maximise our influence in shaping the future of the bloc in line with our interests, including free and fair trade. Costa Rica, Ecuador and Uruguay are among countries that have formally applied, and Thailand, the Philippines and South Korea have expressed an interest in joining, and the bloc is set to rival the EU’s single market as a global standards setter.
- Maintaining a veto on new joiners to the CPTPP, making sure British businesses and interests are always protected. Decisions on new joiners require full consensus, which gives the UK a firm say on the terms under which any future countries join.
Joining CPTPP will open new markets for our world-leading digital firms and attract further investment into the UK:
- Joining CPTPP will remove unjustified barriers for our cutting-edge digital firms, helping the UK to become a world leader in digital trade. Remotely delivered services from the UK to CPTPP were worth £20.5 billion in 2020. Joining CPTPP will help remove the unjustified barriers for digital firms and, according to the City of London Corporation, help the UK become a leader in digital trade, with freer access to other members’ service sectors.
- Providing new protections for CPTPP investors in the UK, encouraging investment and creating new British jobs. As of 2021, CPTPP countries had direct investments worth around £182 billion in the UK, accounting for at least nine per cent of total UK inward investment. Investment from CPTPP also supported the creation of over 5,000 new jobs in 2021/2022. Joining the CPTPP means investors are guaranteed protections and have access to a modern, transparent dispute settlement mechanism, which will encourage further investment in the UK, while protecting UK investors abroad.
The policy paper in full can be found here: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): conclusion of negotiations - GOV.UK (www.gov.uk)
