UK Secures Final Ratification to Join CPTPP by December 15

The UK has secured the necessary ratifications to join the CPTPP by mid-December. This deal will enable over 99% of UK goods exports to CPTPP members to be tariff-free, boosting the UK economy by an estimated GBP 2 billion annually by 2040. UK businesses are urged to explore opportunities arising from this agreement.

The United Kingdom confirmed on Thursday that it has successfully secured the sixth and final ratification needed to trigger its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by December 15.

The CPTPP is a significant free trade bloc that spans five continents and includes Pacific rim countries such as Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Malaysia, Vietnam, and Japan. Once the UK officially joins, the bloc will encompass nearly 600 million people.

Following Peru's ratification of the agreement, the deal initially entered under the previous Conservative Party government will come into effect under the new Labour government. Minister of State for Trade Policy, Douglas Alexander, emphasized that this development is beneficial for UK businesses. "This is good news for UK businesses, who are now one step closer to being able to take advantage of the opportunities our membership of CPTPP will bring," he noted.

Alexander urged businesses to contact the Department for Business and Trade (DBT) to learn how CPTPP could benefit them. The DBT highlighted that more than 99 per cent of current UK goods exports to CPTPP members will be tariff-free once the deal is activated. This move is expected to help enterprises export more and drive economic growth, with official estimates predicting the agreement could boost the UK economy by around GBP 2 billion annually by 2040.

Before Peru's ratification, other members, including Japan, Singapore, Chile, New Zealand, and Vietnam, had already ratified the UK's accession terms. With these countries on board, the agreement will be effective by mid-December and will expand as more members ratify. The DBT also mentioned ongoing collaborations with other member countries still in the ratification process.

As the first country to join the CPTPP, the UK will significantly influence the group's future development, from shaping the CPTPP rulebook to advocating for the group's expansion to new economies. Concurrently, the UK is negotiating a separate free trade agreement with India. Talks stalled due to elections in both countries are set to resume, focusing on enhancing the GBP 38.1 billion annual bilateral trade partnership. Business and Trade Secretary Jonathan Reynolds affirmed the new Labour government's dedication to continuing these FTA discussions.

(With inputs from agencies.)