The UK's membership expands CPTPP’s total GDP to £12 trillion, presenting significant opportunities for British businesses. In the long term, the economic impact of this accession is projected to boost the UK economy by £2 billion annually, solidifying its position as a global trading hub. 

• £2 BILLION BOOST TO GROWTH AS UK JOINS MAJOR TRADE GROUP 
• 15th December 2024, the UK became the first European nation to accede to CPTPP, a significant trade bloc in the Indo-Pacific, which includes countries like Australia, Vietnam, Peru, Chile, and Malaysia 
• UK membership grows CPTPP’s GDP to £12 trillion and creates opportunities for businesses, potentially boosting the economy by £2 billion a year in the long run 
• This comes as an immediate step to support the Government’s Plan for Change by delivering growth. 

The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a fully-fledged member, potentially boosting the UK economy by £2 billion a year in the long run. 

CPTPP is a major trade bloc whose members - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK – have a combined GDP of £12 trillion. 

The UK's accession is estimated to benefit all UK nations and regions in the long run, relative to 2019 values, with boosts of £240 million for Scotland, £110 million for Wales, and £70 million for Northern Ireland. All English regions are estimated to gain £450 million for the Southeast and £310 million for the Northwest. 

From Sunday, 15th December, businesses across the country will face lower tariffs and fewer barriers when selling to economies across three continents. The financial services, manufacturing, and food and drink sectors in particular are set to benefit. This will help support the Government’s Plan for Change by boosting household wages by £1 billion every year and delivering on one of the five missions of kickstarting economic growth. 

Business and Trade Secretary Jonathan Reynolds said: 

“Britain is uniquely placed to take advantage of exciting new markets, while strengthening existing relationships. Today’s news is further proof that the UK is a wonderful place to do business, with an open, outward looking economy driving the growth people can feel in their communities. 

 Agreements like this boost trade and create opportunities for UK companies abroad. This is a proven way to support jobs, raise wages, and drive investment across the country which is key to this Government's mission to deliver economic growth. 

Our Trade Strategy, published next year, will finally put in place a long-term, strategic plan for international trade that helps businesses and consumers and, ultimately, grows the economy.” 

CPTPP is designed to expand over time, further expanding the agreement's economic and strategic benefits. Costa Rica was recently announced as the next country to join, and other economies, such as Indonesia, the largest economy in Southeast Asia, with a GDP of over £1 trillion and home to around 280 million people in 2023, are queuing up to join. 

Sectors like automotive and food and drink will benefit from CPTPP membership, including through modern “rules of origin” provisions that allow goods to qualify for lower tariffs when built from parts from CPTPP countries and then exported to a CPTPP country. For example, a UK car engine manufacturer using components from other CPTPP countries could more easily qualify for lower tariffs when exporting the final engine within CPTPP. 

UK services firms, which employ over 80% of our workforce, could also find it easier to export their services to CPTPP countries, with firms allowed to manage funds across the world from the UK and provide services to CPTPP markets on a level playing field with domestic firms in key sectors. 

Prices on consumer goods could also fall if importers pass on savings, with tariffs removed on items like fruit juices from Peru and vacuum cleaners from Malaysia. 

Through CPTPP, the UK now has free trade deals with Malaysia and Brunei for the first time, economies with a combined GDP of over £330 billion last year. 

CPTPP’s entry into force comes as the UK edges closer to securing trade deals with partners such as the Gulf Cooperation Council, India, Switzerland, and South Korea. This forms one half of the government’s twin-track approach to trade, which seeks to reset our relationship with the EU while striking new trade deals. 

The UK and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) 

The UK's accession to CPTPP, guidance for small and medium-sized enterprises (SMEs)