The UK has officially joined the CPTPP Indo-Pacific trade bloc and becomes the second largest economy in GDP in the group.
With a combined GDP of over £12 trillion, the UK will benefit from accessing Asia’s fast growing economies, and eliminates tariffs on 99% of exports to nations including Australia, New Zealand, Japan and Singapore.
The CPTPP with the UK’s membership will account for 15% of global GDP with China also seeking to join the bloc in the future.
Thanks to zero tariffs on a majority of goods, the UK will benefit from increased exports to the CPTPP country members, with potential for faster export growth as a number of countries in the bloc are developing markets.
Being part of the trading bloc also allows the UK to import goods with the removal of tariffs which could increase product choice in Britain’s retail stores and lower prices in the long-term.
Being part of CPTPP means the UK will also have established a free trade agreement with Malaysia for the first time. The deal is set to eliminate 80% of tariffs on UK exports.
With Britain’s service economy driving a majority of economic growth, the opportunities for businesses are numerous, providing new market access to more than 500 million consumers in the Indo-Pacific trade bloc.
The UK also has the largest tax treaty network in Europe with agreements spanning 130 countries providing it a distinct advantage when it comes to multinational businesses wanting to set up their headquarters in London.
As the UK continues to forge new trade agreements since its departure from the European Union, the CPTPP could prove to be the most lucrative free trade deal it has signed in the last 50 years.