As we reported two months ago, the UK has been working to become the first European member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Yesterday (31 March 2023) British prime minister Rishi Sunak announced that the country had joined the 11-party trade bloc, claiming it would boost the bloc’s total GDP to £11 trillion.
The CPTPP is home to more 500 million people and will be worth 15% of global GDP once the UK joins. It is estimated that joining will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels.
The country will become the first new member, and the first in Europe, to join the CPTPP since it was established in 2018. The trading bloc includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Becoming a CPTPP member means that more than 99% of UK exports to the 11 other countries will now be eligible for tariff-free trade. That includes major exports, such as cheese, cars, chocolate, machinery, gin and whisky.
In the year through September 2022, the United Kingdom exported £60.5 billion ($75 billion) worth of goods to CPTPP countries, Mr Sunak’s office said in a statement.
As the first non-founding member of the bloc, the UK is expected to set the template for other applicants to join, including Costa Rica and Uruguay.
China, which applied to become a member in 2021, several months after the UK, is likely to face significant pushback from members, including the UK, that will argue Beijing should be blocked unless it complies with existing international trade rules.
Unions condemned clauses in the deal that will allow large companies to sue the UK government behind closed doors if they believe their profits have suffered from changes to laws or regulations.
Some trade experts said joining the CPTPP bloc would harm the UK’s ability to rejoin the EU at a later date, arguing that harmonising trade rules with the CPTPP countries would drive a wedge between Brussels and London.
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