Is joining the CPTPP a game changer for UK businesses?
- The UK is the first European nation to join the CPTPP trade agreement, which aims to enhance trade relationships with Indo-Pacific countries.
- Despite initial skepticism from Sir Keir Starmer regarding the economic benefits of the deal, government officials now expect substantial growth opportunities.
- Experts believe that the CPTPP membership could yield up to £2 billion per year, aligning with the UK government's aim to stimulate economic growth.
The United Kingdom joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), marking a significant step as the first European nation to become a member. This announcement followed the UK’s application in early 2021, which began a lengthy process that included negotiations and consultations with existing members of the bloc. By the end of 2023, the agreement will officially come into force, with key members including Japan and Australia among those who ratified the UK's application. Despite earlier skepticism from Sir Keir Starmer, who noted the economic impact would be minimal at about 0.08%, his business secretary Jonathan Reynolds claimed that the agreement would ultimately boost trade and create new opportunities for UK companies abroad. The government projects potential economic gains of up to £2 billion annually due to increased trade with CPTPP countries and is working to enhance the benefits of this trade deal for British businesses. Additionally, Conservative leader Kemi Badenoch has highlighted Starmer's previous doubts about the trade negotiations, emphasizing the deal as a key achievement for her party post-Brexit. As the CPTPP evolves, it is expected to attract more countries to join, broadening the economic benefits and reinforcing the UK's position in a rapidly growing market.