‘Major milestone’: UK ratifies Indo-Pacific CPTPP post-Brexit trade deal ahead of schedule
The UK has hit a “major milestone” in its efforts to join the Comprehensive and Progressive Trans-Pacific Partnership trade pact as it ratified the terms of agreement ahead of schedule.
Britain is now set to join the bumper Indo-Pacific trade pact later this year, once three more world economies have ratified by October.
Trade policy minister Greg Hands is set to announce the news while in Arequipa, Peru, during a trade trip where the UK-Peru agreement on avoiding double taxation was reached.
He said: “The UK has been racing to get our ratification done because we know how much CPTPP will benefit British businesses, whether through access to new markets or cutting red tape on existing exports.
“I’m delighted we were able to bring this forward, ahead of our original July forecast, so we can get the countdown to entry into force going as soon as possible.”
Entering the trade deal, worth £12 trillion globally, is seen by ministers as a significant post-Brexit boost to the UK’s trading environment.
British businesses will benefit from lower tariffs and fewer barriers to trade, with the CPTPP accounting for 15 per cent of worldwide GDP, including the UK, and 500m consumers.
Business and trade Secretary Kemi Badenoch signed the deal last July, with 12 economies spanning Asia, the Pacific, and now Europe.
Singapore, Japan, and Chile have already ratified the UK’s entry with other countries in the works, the Department for Business and Trade (DBT) said.
William Bain, head of trade policy at the British Chambers of Commerce (BCC) , said: “There are few multinational trade agreements like this one. The UK’s addition to this bloc will open up new opportunities for both inward and outward investment.
“Crucially, it will also give the UK a say in the bloc’s future development, making it a deal that will work for our traders both now and in the future.”
While Marco Forgione, director general of the Institute of Export & International Trade (IEIT) said: “The ratification of CPTPP marks an important stage in the UK’s trading future.
“Now CPTPP is ratified, the real work begins to make sure businesses understand how to take advantage of the immense opportunities for UK services and goods in CPTPP nations.”
And Miles Celic, chief executive officer at TheCityUK said: “The UK’s ratification is another major milestone in the journey to finalising this strategically important deal.
“Britain will not only benefit from better access to some of the world’s fastest growing economies, it will also be able to help shape the future direction of a group which is increasingly important for the future of the global economy.”