UK signs treaty to join CPTPP

The signing of the treaty has kickstarted the UK's membership of a modern and ambitious trade deal spanning 12 economies across Asia, the Pacific, and now Europe.  

Business and Trade Secretary Kemi Badenoch put pen to paper on this mega deal, alongside New Zealand Trade Minister Damien O'Connor, Viet Nam Minister of Industry and Trade Nguyen Hong Dien, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalisation Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.

The signature is the formal confirmation of agreement for the UK to join the group, following substantial conclusion of negotiations earlier this year.

The signing comes as a new government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country. 

Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion in 2021, by guaranteeing protections for investors.

UK's strategic commitment to the Indo-Pacific region

Speaking ahead of the signing, Kemi Badenoch expressed his delight to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.

"We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country", he shared.

British Ambassador to Viet Nam, Iain Frew said that total trade between the UK and Viet Nam has recently reached £6.9 billion-an increase of 29 percent on last year, adding that the UK's accession to CPTPP will strengthen this even further and shows the UK's strategic commitment to the Indo-Pacific region.

"I am grateful to the Government of Viet Nam for their support and collaboration in accession, particularly meaningful as we celebrate 50 years of diplomatic relations between our countries. I look forward to working closely with the Government of Viet Nam, other partners and businesses to make the most of this new partnership", he noted.

Meanwhile, Chairman of the British Chamber of Commerce in Viet Nam, Chris Jeffery said, the British Chamber of Commerce in Viet Nam is excited about this further opening up of business opportunities for both Viet Nam and the UK, with the existing Free Trade Agreement (UKVFTA) and now the accession to CPTPP, the opportunities availed to British business based in Viet Nam are some of the best worldwide. 

He expressed his belief that trade between Viet Nam and the UK will continue its rapid growth, marking the start of the next 50 years of partnership and growing links between the two countries. The opportunity is now there for UK companies to fully benefit from the UK's focus on developing ties and links with Asia.

The UK will be the first European member and first new member since CPTPP was created. With the UK as a member, CPTPP will have a combined GDP of £12 trillion and account for 15 percent of global GDP.

Being part of CPTPP will mean that more than 99 per cent of current UK goods exports to CPTPP countries will be eligible for zero tariffs.

The agreement is a gateway to the wider Indo-Pacific which is set to account for the majority of global growth and around half of the world's middle-class consumers in the decades to come, bringing new opportunities for British businesses and supporting jobs.

Earlier, the CPTPP was signed by 11 countries, namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam in Chile on March 8, 2018.

Eight months later, Viet Nam ratified the trade deal that took effect on January 14, 2019./.