The United Kingdom has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement.
What is CPTTP?
On 8 March 2018, eleven countries (see below) signed a new free trade agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Once member countries ratify the agreement, the CPTPP will be one of the largest free trade agreements in the world (after NAFTA and EU). The economies included in the CPTPP account for 13.5 per cent of world GDP - worth US$10 trillion. CPTPP represents a significant step toward closer trade and investment linkages in the Asia-Pacific region.
What countries are involved?
The CPTPP is a free-trade agreement between the following eleven countries around the Pacific Rim:
And soon to include the United Kingdom too.
United Kingdom joined the CPTTP
The United Kingdom has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement. The Agreement will enter into force once the UK and CPTPP Parties have finished their legislative processes, which is expected to happen in the second half of 2024.
Just Trade will update the procedures in the relevant country pages of the International Trade Guide once details have been released.
What benefits does the CPTTP Agreement bring to the UK economy?
Advantages to the UK economy being a part of the CPTTP Agreement:
Free Trade Agreements with Malaysia and Brunei,
Better market access than the UK has under its existing FTAs,
More ambitious text than is found in some of the rolled-over FTAs on issues such as digital services and data flows,
The ability to operate under a single set of rules of origin.
These benefits may grow if new countries join the CPTPP or if trade develops in a way for which the CPTPP rules are particularly helpful.