UK accession to CPTPP is a moment for the history books

This article is co-authored with Graham Zebedee, Chief U.K. Negotiator for accession to the Comprehensive and Progressive Trans-Pacific Partnership.

The history books do not usually mark the end of trade negotiations. But 31st March 2023 was a momentous date for the United Kingdom and the Asia Pacific region alike. It marked the conclusion of two years of negotiations for the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The UK is extremely grateful for the constructive engagement from all CPTPP members during our accession process which have comprised 100s of hours of discussions, both virtually and in-person. We now expect the agreement on UK accession to be signed in the coming months, and in force next year.

The CPTPP bloc already comprises 11 nations and over half a billion people. With UK accession it will make up over 15% of global GDP, with a value of over $15 trillion.

Yet there is much more behind this move than creating a huge trade bloc. The UK will support and enhance the trade principles and priorities enshrined in CPTPP – strong liberalising commitments; proportionate regulation; transparency, the protection of intellectual property rights; the free flow of data; limits on state-owned enterprises; and many more. These in turn underpin the values of free and fair trade, the rule of law and due process over coercion.

The UK joins some of the most dynamic economies in the world in CPTPP, as we tilt our focus to the Indo-Pacific. ?With the UK’s accession, it moves from being a Pacific agreement to a truly global one.?The CPTPP model has influence on the world stage on the issues that we care about - from promoting open markets to green economic growth – and can have more.

The UK will be a reliable partner of the other CPTPP members, as we deepen our economic ties in this region. Joining this agreement will help businesses diversify their supply chains, for example by lowering tariffs, having more common rules of origin, and facilitating greater mutual recognition of goods and professional qualifications.

Acceding to CPTPP will also provide the UK’s first free trade agreement with Malaysia, an economy worth $373 billion in USD in 2021, and Brunei, cementing our existing strong bilateral and Commonwealth ties. In other cases, accession will builds on our existing agreements including the landmark deals the UK negotiated from scratch with Australia and New Zealand.

UK membership of this bloc is a gateway to a region that is expected to account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come. Many consumers in the region will already be familiar with successful British brands. Many more will be joining them in the years to come, creating jobs and investment opportunities.

Equally, companies in the region will be able to enjoy even better access to the UK: the world’s sixth largest economy, with over 67 million consumers, and a centre of global finance; tech; services; manufacturing; law; arts; education - and much more besides.

The UK is already a strong investor in the CPTPP region. If the 11 members are considered together, the bloc ranks as the fourth-highest recipient of foreign direct investment from the UK. It can only be expected to rise further after UK accession to the group. Meanwhile, in 2021, the stock of inward FDI from CPTPP in the UK was at least $249 billion.

This agreement will deepen our investments as we all seek to build back from the pandemic. It contains guarantees against discrimination, and protections that will encourage greater economic partnerships in the years ahead.

The UK has turned a new page on its trading relationships. We are ready to write this future together with our partners in the CPTPP.