Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Launch of Accession Negotiati

The UK will today launch negotiations with 11 countries belonging to a free trade area, in a landmark moment for the UK as an independent trading nation. Joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) hitches the UK to some of the world’s biggest current and future economies populated by half a billion people and with a joint GDP of £9 trillion.

It would secure our businesses and British exports superior access to these dynamic markets, with 65% of the world’s 5.4 billion middle class consumers expected to be in Asia by 2030. UK exports to CPTPP nations would increase by 65% —£37 billion—until 2030 and, in addition to this growth, comparative static analysis shows an additional increase in trade by £3.3 billion as a result of UK accession.

Membership of CPTPP would build on the FTAs we have now signed with 67 countries plus the EU, and opens new markets for our services sectors, lowers tariffs on goods like cars and whisky, and creates new opportunities for UK farmers. The historic trade deal agreed in principle with Australia on 15 June will mean iconic British products will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million across the country. This agreement, and others with CPTPP members including Japan, Singapore and Mexico, are a gateway into the fast-growing Indo-Pacific region and will boost our bid to join CPTPP.

CPTPP members represent 13% of global GDP, growing to 16% if the UK joins. Joining CPTPP would put the UK at the heart of this dynamic group of countries, deepening our ties with some of the world’s biggest and fastest-growing countries, as the world economy increasingly centres on the Pacific region.

Joining CPTPP is expected to boost this growth even further, and that means supporting even more UK jobs. It is an advanced and ambitious agreement which goes deep in areas of UK interest such as services and digital trade.

The Indo-Pacific is the world’s growth engine: home to half the world’s people; 40% of global GDP; and some of the fastest-growing economies that are at the forefront of new global trade arrangements. By entering into a free trade agreement with these countries, the UK can benefit from this growth. Acceding to the CPTPP would help the UK engage more deeply with the region, and help us secure increased trade and investment opportunities, diversify our trading links and supply chains, and embed open trade.

As part of CPTPP, our analysis shows that every nation and region of the UK is expected to benefit. Each region of the UK already exported over £1 billion worth of goods to CPTPP members in 2019, including £3.1 billion from the East Midlands, £2.4 billion from Scotland, and £2 billion from the North West. Membership could deliver a £1.8 billion boost to UK GDP in the long run and to increase take-home pay for British workers by £800 million.