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

In December 2024, the UK formally joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP is an Asia-Pacific trade bloc made up of 11 countries plus the UK. The 11 original members are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam

The UK is the first new member since the bloc was established in 2018 and the first European country to join. Other countries (including China) have applied to join CPTPP or expressed an interest in doing so.

From 15 December 2024, the UK will be able to trade with eight CPTPP members under the terms of the agreement. These eight members are: Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam. The agreement will enter into force for UK trade with Australia on 24 December and for trade with Canada and Mexico 60 days after they ratify.

Why does the Government want to join?

Negotiations to join CPTPP and the UK’s agreement to accede took place under the Conservative government. It argued that CPTPP membership will bring a range of benefits, including lower trade barriers to a dynamic region expected to become increasingly significant in the global economy. CPTPP accession also formed part of the Conservative government’s “Indo-Pacific tilt”.

The Labour government also claimed that the agreement would bring economic gains to the UK.

Limited economic impact

The economic benefits appear to be small. TheGovernment’s impact assessment estimated the long-run increase in GDP would be £2 billion (or 0.06%) but could be higher if other countries, such as South Korea, join the bloc. The impact assessment highlights the uncertainty around this estimate.

One reason why the gains are expected to be modest is that the UK already has bilateral trade agreements with 9 of the 11 CPTPP countries, Malaysia and Brunei being the exceptions. The UK also does a limited amount of trade with CPTPP countries. In 2022, the UK exported £64.7 billion of goods and services to these countries (7.8% of the UK total) and imported £53.7 billion (6.0%). Many see the gains from joining CPTPP as geopolitical rather than economic.

Concerns raised about the agreement

Various organisations have expressed concerns about the implications of CPTPP for food safety, farming and environmental standards. The NFU and WWF note the UK has not developed core minimum standards for food imports. Concerns have been raised about a possible conflict between the UK’s ‘precautionary’ approach to regulation and the CPTPP’s ‘scientific’ approach. The Conservative government emphasised that food imports will continue to comply with UK import standards.

Concerns have also been raised over palm oil. Tariffs on palm oil will be reduced to from up to 12% to zero, potentially leading to more imports. Environmental groups argue that palm oil production is linked to deforestation and damages orangutan habitats. The Conservative government said that the UK and Malaysia have published a joint statement on sustainable agricultural commodity trade and cooperation to conserve forests (PDF).

Some groups have raised concerns over Investor-State Dispute Settlement (ISDS) provisions. These are highly controversial with some arguing that they allow foreign investors to challenge government policies in areas such as the environment, workers’ rights and health. ISDS provisions have been excluded between the UK and Australia and New Zealand under CPTPP, in line with the UK’s bilateral free trade agreements with these countries. The Conservative government said its right to regulate in the public interest will be preserved.

Reports on agricultural aspects of CPTPP

The Trade and Agriculture Commission’s (TAC) report found CPTPP did not require the UK to change its levels of statutory protection relating to animal or plant life or health, animal welfare or environmental protection.

The Conservative government published its report under section 42 of the Agriculture Act 2020 examining whether CPTPP’s provisions which apply to trade in agricultural products are consistent with UK statutory protections relating to (a) human, animal or plant life or health (b) animal welfare and (c) the environment. It concluded that accession was consistent with the maintenance of statutory provisions in these areas.

Parliamentary scrutiny

There is no statutory requirement for a Commons debate or vote on the agreement. The Business and Trade Committee’s report did, however, call for a debate on a substantive motion in the House of Commons as the agreement raised “contentious issues”. CPTPP itself was not debated in the Commons during the 21 day period under the Constitutional Reform and Governance Act 2010, although the bill implementing the UK’s accession was debated. The Lords held a debate on the agreement on 19 March 2024.