The UK will on Sunday become the first European nation officially to join an Indo-Pacific trade bloc, in a move that will “boost trade and create opportunities” for British firms abroad.
Britain will become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Sunday, following years of procedure.
The UK will become the 12th country to join the trade agreement, having first put in an application in early 2021, and officials hope it could add billions to the economy.
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
The UK will enter into the agreement with the eight of the bloc’s 11 existing members who first ratified the accession on Sunday.
These countries are Japan, Singapore, Chile, New Zealand, Vietnam, Peru, Malaysia and Brunei.
It will then on Christmas Eve enter into force with Australia, who later ratified the deal.
Canada and Mexico are yet to finally rubber-stamp the UK’s membership, but it is understood that officials expect them to do so at some point in the future.
Officials hope the move could boost the economy by as much as £2 billion a year compared with levels of GDP projected for 2040 without the CPTPP deal.
It is expected that the CPTPP will get larger in the coming years, and last month it was announce that Costa Rica would be the next country to work through the process of joining.
Business 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.”
The deal places the UK in a bloc with the fastest-growing economies in the world and was a key Brexit benefit to add to our EU trade deal
Conservative leader Kemi Badenoch, who was trade secretary when the UK formally agreed to join the bloc in 2023, said: “The Conservatives delivered CPTPP – a trade deal that brings enormous benefits to everyone from British farmers to fintech and small businesses to the largest manufacturers.
“The deal places the UK in a bloc with the fastest-growing economies in the world and was a key Brexit benefit to add to our EU trade deal.
“However, joining a trade bloc is only the start. Labour spent the last parliament mocking our CPTPP negotiations, and they now have a responsibility to ensure that UK companies can make the most of this landmark deal.”
