UK seeks to join Pacific free trade area CPTPP, boost for F&B markets
01 Feb 2021 --- The UK is formally applying to join one of the world’s largest free-trade areas, deepening trade ties with some of the fastest-growing markets in the world. International trade secretary Liz Truss will speak to ministers in Japan and New Zealand today to request to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), with formal negotiations set to start in the weeks ahead.
Joining the CPTPP would deepen the UK’s access to fast-growing markets and major economies, including Mexico, Malaysia and Vietnam, to benefit UK food and beverage businesses.
These plans come as the UK marks one year after leaving the EU and becoming an independent trading nation.
Reducing tariffs for whiskey
Joining the £9 trillion (US$12.3 trillion) partnership will cut tariffs for UK industries, including food and drink. The UK government stresses that joining does not require the UK to cede control over our laws, borders or money.
UK trade with the group was worth £111 billion (US$152 billion) in 2019, growing by 8 percent a year since 2016. Benefits that CPTPP membership will bring for businesses include:
- Modern digital trade rules that allow data to flow freely between members, remove unnecessary barriers for businesses, and protect commercial source code and encryption.
- Eliminating tariffs quicker on UK exports, including whiskey (down from 165 percent to 0 percent in Malaysia).
- Rules of Origin that allow content from any country within CPTPP to count as “originating.”
- Easier travel for business people between CPTPP countries, such as the potential for faster and cheaper visas.
Joining the CPTPP will eliminate tariffs quicker on UK exports, including whiskey (down from 165 percent to 0 percent in Malaysia).“One year after our departure from the EU, we are forging new partnerships that will bring enormous economic benefits for the people of Britain,” says UK prime minister Boris Johnson.
“Applying to be the first new country to join the CPTPP demonstrates our ambition to do business on the best terms with our friends and partners all over the world and be an enthusiastic champion of global free trade.”
Truss adds that joining CPTPP will create significant opportunities for UK businesses and deepen Britain’s ties with some of the fastest-growing markets in the world.
The UK will publish its negotiation objectives, scoping analysis, and consultation response in advance of negotiations expected to start this spring.
CPTPP membership is a key part of the government’s plan to position the UK at the center of a network of modern free trade deals that support jobs and drive economic growth at home.
“Membership of the CPTPP would be a hugely welcome development to all small businesses looking to either expand or begin their trading journeys,” adds Mike Cherry, Federation of Small Businesses (FSB) chairman.
“Crucially, at the very heart of this agreement is an SME chapter, something that we have lobbied for the inclusion of in every FTA, ensuring that no business is left behind.
This is truly a world-leading agreement and one that will genuinely help small firms to thrive and succeed more than ever.”
Edited by Gaynor Selby
