Unlocking New Trade Opportunities: UK Joins Trans-Pacific Partnership

Two years after applying, the UK is the first European country to join the CPATP. But how does the Comprehensive and Progressive Agreement for Trans-Pacific Partnership benefit you? Find out here.

What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.

The CPTPP allows goods and services to be traded with reduced red tape and taxes so that your business with other countries in the partnership can thrive.

What is the benefit of joining the CPTPP for the UK?

The UK already has trade agreements in place with nine of the 11 other members of the CPTPP, so the immediate benefit is not significant overall. However, businesses exporting to and importing from Brunei and Malaysia will see incredible advantages compared to before.

For example, whiskey exported to Malaysia attracted an 80% import duty before the UK joined the CPTPP, which is reduced to 0% under the new trade agreement.

The whiskey industry is the largest UK exporter in the food and drink sector, and has seen substantial investment since the reduction in US duty for whiskey makers and the implementation of a direct Scotland to China liner schedule, so it is in a prime position to push export sales to Malaysia.

Anishka Jelicich, Pernod Ricard’s UK director of public affairs, demonstrated the support of the partnership in a statement, where she said that joining the CPTPP:

“is a big opportunity for our Scotch whisky business.”

“Five of our top 20 export markets are CPTPP members. We expect tariff cuts and smoother access to some of the world’s fastest-growing economies to increase exports and secure jobs and investment in the UK, with sales doubling in some markets.”

It isn’t only exporters of physical products that will benefit from the UK’s membership. Services, which accounted for approximately 43% of the UK’s exports to CPTPP countries in 2022, will also benefit from the elimination of needing a physical office or residency in another member country to provide for businesses there.

More opportunities on the horizon

The UK’s ascension to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership doesn’t only open new market opportunities in Brunei and Malaysia. Any new members that join the CPTPP will also enter into a free trade agreement with the UK.

Costa Rica and Ecuador have applied and are under review. Uruguay, Thailand, The Philippines, South Korea, and China are also interested, but have not formally applied yet.

The USA did apply under the Obama administration, but withdrew their application under President Trump. If the USA reapplied and obtained membership, the CPTPP would become the largest free trade agreement in the world.

Exporting to the CPTPP?

Customs Support are here for you. Our customs consultants work with importers and exporters like you across Europe, providing up-to-date information and guidance so that you can optimise your supply chain.

If you could benefit from the help of an experienced customs partner when exporting to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), contact one of our experts for a consultation.