British Accession to CPTPP

LONDON (Reuters) – The British government announced on Thursday that its agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will take effect by December 15 this year, following the final required ratification.

CPTPP is a free trade agreement established in 2018 between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Britain will be the only European member of CPTPP and the first new country to join since its inception.

Britain completed negotiations to join the pact in March 2023 and signed the accession treaty in July that year, requiring ratification from its own government and at least six other member states.

Peru became the sixth country to ratify the terms of Britain’s accession, along with Japan, Singapore, Chile, New Zealand, and Vietnam. The agreement will come into force with these members this year and will subsequently take effect with other members as they ratify.

Minister of State for Trade Policy Douglas Alexander stated, “This is good news for UK businesses, who are now one step closer to taking advantage of the opportunities our membership of CPTPP will bring.”

The CPTPP mandates member countries to eliminate or significantly reduce tariffs, commit to opening services and investment markets, and uphold rules regarding competition, intellectual property rights, and protections for foreign companies.

The British government indicated that more than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal is effective, potentially boosting the UK economy by around £2 billion ($2.6 billion) annually by 2040.

($1 = 0.7583 pounds)