CPTTP is a real opportunity for global UK

The UK government has announced that it will join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) – marking a new chapter for our independent free trade policy. As one of the largest free trade agreements in the world - bringing together countries from East Asia to the Americas - these 11 nations contribute over ￡100 billion to our economy.

In a year that the UK wants to make its mark globally with COP27 and G7, Britain is signalling that it is set to look beyond Europe and hitch its economy more closely to the fast-growing Pacific rim and to like-minded democracies like Australia, Canada, Japan and New Zealand. 

Membership of the bloc has the potential to deliver new opportunities for British business across many different sectors and regions. So, how big exactly is the size of the prize for firms on the ground? As members the UK could:

Secure greater access to a market covering over 10% of global GDP and expands bilateral  trade with the 11 countries (bigger than UK trade with China). 

Businesses could make products for all different markets without the need to change processes, parts, suppliers or components. This would be a critical enabler for UK supply chains allowing companies to import and export components more easily and making investments more competitive.   

A deal could free up data flows – life blood for the modern economy – for UK business across the Pacific, cutting costs for the UK’s service sector and a chance to team up with Singapore, Chile and New Zealand.

There is also the tantalising prospect that the deal might help the UK-US trade.  The US helped shape some of the provisions under this trading bloc, and although not a member, the decision to re-join may still be up in the air. 

 Central to the success of this deal is to make sure it works for businesses. It’s why we’re proposing three fundamental asks for when negotiations kick-off.

First the government must take its time on this, and not treating this as solely political and symbolic. Agreement amongst 11 members as with any multilateral arrangement will be difficult and could take several years. Ensuring that we get a comprehensive deal that is not rushed will be critical.

Second businesses must have a seat around the table when negotiations begin. This way firms asks, and priorities are wired in right from the offset. Detailed consultation with companies is even more important as there are some potentially tricky dossiers in the deal, from investment facilitation to data, and the UK will need to think how it uses its existing bilateral deals with individual countries to facilitate access to the wider block.  Right now, Britain already has free trade agreements with 9 of the 11 CPTPP members and if wants further tariff liberalisation, it will have to do so bilaterally first with the individual countries.   

 Third and most important, the objective and measure of success must be increased prosperity across in every region and nation.  For instance, East Midlands alone export ￡3.1 billion goods to these markets. Joining the agreement could further facilitate this trade and contribute towards closing the gap in regional disparities, but this will require supporting more businesses to export, particularly those that are new to it.

 To rebuild our economy trade will be a vital tool, for levelling up our communities, by lowering market access barriers, increasing entry to our goods and services, and boosting investment into industries that are responsible for creating thousands of jobs throughout the country.

While there might be a long road ahead, businesses stand ready to continue to work with the Government to ensure that firms get the most out of this new agreement and that it delivers wide-ranging benefits to communities across the country.