The UK joins the CPTPP - VnExpress Business

The UK became the 12th economy to join the CPTPP, its largest trade agreement since Brexit.

This morning (July 16th) in New Zealand, UK Business and Trade Minister Kemi Badenoch officially signed the agreement to join the Comprehensive and Progressive Trans -Pacific Partnership (CPTPP), making the UK a new member of the 12-economy trade bloc.

The agreement was signed by the UK Minister along with New Zealand Trade Minister Damien O'Connor, Vietnam's Minister of Industry and Trade Nguyen Hong Dien, Canada's Minister of Trade Mary Ng, Japan's Minister for Economic Recovery Goto Shigeyuki, and Australia's Deputy Minister for Trade Tim Ayres.

The signing ceremony confirmed the UK's accession to the trade bloc, following negotiations that concluded earlier this year. The UK government said it would take the necessary steps to ratify the agreement, including parliamentary oversight, while other CPTPP member countries finalize their domestic legislation procedures.

UK Business and Trade Minister Kemi Badenoch assessed that the CPTPP would be a major boost for British businesses, adding billions of pounds to trade and opening up enormous opportunities and unprecedented access to a market of over 500 million people.

"We are leveraging our position as an independent trading nation to participate in a dynamic, evolving, and forward-looking trading bloc that will help boost the UK economy and create hundreds of thousands of jobs," said Kemi Badenoch.

The signing ceremony that made the UK the 12th member of the CPTPP took place in New Zealand on the morning of July 16th.

The CPTPP was signed in 2018 and came into effect for Vietnam at the beginning of 2019. The agreement includes 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Singapore, New Zealand, Peru, and Vietnam. In total, these countries have approximately 500 million inhabitants. The International Monetary Fund (IMF) estimates that with the UK's participation, this group would contribute 15% of global GDP.

The UK had been studying the possibility of joining the CPTPP since early 2018, aiming to stimulate exports post-Brexit. They submitted their application to join the CPTPP in 2021.

The British government estimates that this agreement will help them reduce import tariffs on cars, wine, and dairy products. The UK's GDP will increase by an additional £1.8 billion ($2.2 billion) per year in the long term. This figure could rise further if more countries join.

The CPTPP is an additional agreement alongside the free trade agreements (FTAs) that the UK already has with most member countries. British businesses will also have more options regarding trade terms. Following Brexit, the UK reached new trade agreements with Australia, New Zealand, and Japan.

Minh Son

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