UK signs pact to join pacific trade deal

LONDON, 16th July, 2023 (WAM) – The UK signed a treaty to join a Pacific trade deal on Sunday, formally becoming the first new member since the framework came into force and shifting attention to a list of other applicants led by China, Bloomberg reported.

Business and Trade Secretary Kemi Badenoch signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in New Zealand, the government said in a statement. New Zealand is chairing a meeting attended by 11 trade ministers and delegations from CPTPP economies.

“The United Kingdom has come through the robust accession process and the overall quality of its commitments has set a good precedent for future economies that wish to join,” New Zealand Trade and Export Growth Minister Damien O’Connor said in a separate statement.

CPTPP-owned businesses employ 1% of UK workers, and membership is expected to “turbocharge investment” further, according to the UK government statement. British whiskey and cars are among 99% of current UK goods exports to CPTPP that’s set to be eligible for zero tariffs, it added.

“The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology,” Ian Stuart, chief executive officer at HSBC UK, said in the statement.

China Next

Beijing is next in sequential order to enter negotiations as the CPTPP seeks to expand, followed by Taiwan, Ecuador, Costa Rica, Uruguay and Ukraine.

The 12 CPTPP members are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam. The bloc, which is home to 500 million people, would account for 15% of global GDP with the inclusion of the UK joins, according to the International Monetary Fund.