The UK has finally joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) giving it access to a market spanning five continents and 600 million people.
The agreement will entered force on Sunday (15 December) between the UK and the other signatory countries that have ratified the UK’s membership of the bloc.
Ratifying countries include Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Chile, Malaysia and Brunei, while the deal will also enter into force with Australia at the end of the month.
While the UK already has bilateral free trade agreements with multiple CPTPP countries membership of the pact should open up new options for traders.
CPTPP does not replace any of the existing trade agreements but will add additional provisions. One of these is the ability for businesses to benefit from ‘cumulation’ – a customs practice whereby a product can qualify for preferential tariffs if it incorporates materials from one or more countries that are co-signatories of an applicable free trade agreement.
Canada and Mexico are also CPTPP members but haven’t yet ratified the UK’s membership of the deal. The UK has continuity agreements with both countries that maintain trading terms from its previous membership of the EU.
While the UK already had bilateral deals with Japan, Singapore, Chile, New Zealand, Peru, Australia and Chile, this weekend will see preferential trade terms entering into force with Malaysia and Brunei for the first time following Brexit.