The UK has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking its entry as the 12th member of the Indo-Pacific trade bloc. This historic move makes Britain the first European nation to align with the CPTPP, which includes major economies such as Japan, Canada, Australia, and Singapore.
The deal, finalized under the Conservative government in July 2023, officially came into effect on Sunday. Proponents view the agreement as a critical step in diversifying the UK’s trade partnerships post-Brexit, with officials projecting a $2.5 billion boost to the struggling British economy annually.
The CPTPP, salvaged from the Trans-Pacific Partnership after the U.S. withdrawal in 2017, is a trade agreement that reduces tariffs and trade barriers among its members. The bloc accounts for 15% of global GDP and includes nations from the Pacific Rim such as Mexico, Vietnam, and Malaysia. The agreement provides less comprehensive free trade compared to the EU’s single market but offers significant opportunities for trade expansion in dynamic Indo-Pacific markets.
The bloc is also seen as a counterweight to China’s influence in the region, though China has applied for membership.
The UK’s entry into the CPTPP comes amid efforts to establish new trade relationships following Brexit. Despite securing deals with Australia, New Zealand, and Singapore, critics argue these agreements have yet to offset the economic costs of leaving the EU, which remains the UK’s largest trading partner.
Jonathan Reynolds, Labour’s Business Secretary, praised the move as evidence of Britain’s openness to international trade but stressed the need for a comprehensive strategy. “The UK is uniquely placed to seize exciting opportunities in new markets while strengthening existing ties,” he said. Labour plans to publish a long-term trade strategy in 2025.
The CPTPP offers significant opportunities for UK businesses, particularly in industries like agriculture, technology, and manufacturing, to tap into fast-growing markets. However, critics note that the benefits of the agreement are modest compared to the economic impact of Brexit, which disrupted trade with the EU.
While the CPTPP marks a milestone in the UK’s post-Brexit trade strategy, its success will depend on how well businesses capitalize on the opportunities within the bloc. As the UK seeks to redefine its role in global trade, the agreement represents both a challenge and a stepping stone toward economic recovery and diversification.
