CPTPP

Prime Minister Rishi Sunak claims joining the 11-strong trade area will "demonstrate the real economic benefits of our post-Brexit freedoms".

"As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation." Mr Sunak said the agreement "puts the UK at the centre of a dynamic and growing group of Pacific economies". She promised the deal is "not going to displace farmers in the UK" and said it will provide more competition for EU countries so "people don't have to buy what they don't want". Ms Badenoch admitted the lower tariffs will apply to palm oil, which is responsible for destroying orangutan habitats, but said you "have to make trade-offs" when doing a deal and said the UK currently buys 1% of Malaysia's exports and "moving to 2% from 1% is not what is going to cause deforestation." The UK is the first European country to enter the agreement, and the government claims it will lead to a £1.8bn boost to the economy "in the long run". Chancellor Jeremy Hunt said joining the CPTPP is a "massive opportunity" for British exporters and shows "our influence in this part of the world is becoming more significant".

The Trans-Pacific trade partnership, which came into force at the end of 2018 in six nations – Australia, Canada, Japan, Mexico, New Zealand, Singapore – and ...

The move ultimately provides tangible evidence of the UK’s commitment to the Indo-Pacific region and builds the necessary relationships to provide substantive alternatives to China for the UK’s allies in the region. However, given neither the Conservative nor the Labour party are advocating for a return to the Customs Union, and given the UK’s accession to CPTPP has been on the cards for a number of years, accession may pose some additional challenges to the UK’s emerging relationship with the EU but it will not fundamentally undermine it, especially in the light of the recently concluded Windsor Framework on the Northern Ireland Protocol (see our commentary If that potential growth is realised, the UK will have gained a foothold in an increasingly important market and access to a fast-growing middle-class population. Regulatory divergences between CPTPP and the EU will move the UK away from trade alignment with the EU and ultimately makes membership of the EU Customs Union virtually impossible. CPTPP nations are among some of the fastest growing in the world, and a key cornerstone of the Indo-Pacific market that is expected to generate 56% of global growth from 2019 to 2050. CPTPP diverges significantly from the EU when it comes to patent law, for example, potentially jeopardising the UK’s membership of the European Patent Convention, and the CPTPP’s requirement that members allow the cross-border transfer of data by electronic means, could conflict with the EU data adequacy decision. In the context of growing tensions with China, defined as an ‘epoch-defining challenge’ in the recent refresh of the Integrated Review, strengthening relations with allies in the region has become increasingly important. The Rules of Origin provision in the deal allows for greater diversification of manufacturing and production processes, increasing the ability for UK firms to procure materials from fellow CPTPP members and vice versa. For the automotive to services to tech industries, these provisions open up the potential for easier imports and exports to and from CPTPP markets, and the manufacturing of higher quality goods. This could particularly disadvantage sectors like agriculture which are unable to compete with the economies of scale available to producers in countries such as Australia and New Zealand. It provides ripe opportunities for the UK to compete with the dominant regional exporters Australia and New Zealand in the distribution of goods such as pork, poultry and dairy; increased trade in fields like the automotive industry, capitalising on closer trading relations with major car export destinations such as Japan, Mexico, Canada and Australia; and to gain preferential access to previously inaccessible or under-tapped markets within Asia. With current CPTPP economies accounting for 15% of global trade and 13% of global GDP, tariff-free access to such a vast market provides important new trading opportunities for the UK.

The NFU responds to the government announcement that it has signed a deal to join the CPTPP trade bloc.

WHISKY bosses have welcomed the UK's new membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

“We need to examine the details agreed so far and would expect the UK Government to involve us fully in any remaining negotiations before a final agreement is reached. A tax rate that was already the highest in the G7.” Ms Badenoch rejected the criticism: “Moving the tariff from 2% to 0% is not what’s going to cause deforestation. In contrast the Office for Budgetary Responsibility forecasts that Brexit will reduce the UK’s potential growth by about 4%. Other applicants for the bloc include Taiwan and China. They have pleaded with the UK Government to "involve us fully in any remaining negotiations before a final agreement is reached." "With the potential for more countries to join CPTPP in the coming years, Scotch Whisky will benefit from further liberalisation in the region. Currently, there are around 800 Scottish firms exporting to CPTPP countries. Asked about the impact of Brexit, Ms Badenoch replied that the CPTPP is in addition to the UK’s free trade agreement with the EU, adding: “We’ve left the EU so we need to look at what to do in order to grow that UK economy and not keep talking about a vote from seven years ago.” It will be the first the time UK has had a trade deal with Malaysia, and the government says that this will, in 16 years, lead to tariffs of around 80% on Scotch being eliminated. Ms Badenoch said the deal would give them “improved access to the countries that will be gateway to the wider Indo-Pacific region which is projected to make up the majority of global growth in the future.” The Department for International Trade said the agreement, which cuts tariffs on exports of food, drinks and car would “deliver new opportunities for growth in a way that is tailored to the UK’s