UNITED KINGDOM/NEW ZEALAND: In a significant development, the United Kingdom (UK) has become the first new member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by signing a treaty, drawing attention to China’s application to join.
The signing took place at a summit hosted by New Zealand, with trade ministers and delegates from CPTPP economies in attendance.
Damien O’Connor, New Zealand’s Minister of Trade and Export Growth, highlighted that the UK had successfully completed a rigorous accession process, setting a strong example for future economies seeking to join the CPTPP.
The agreement holds great promise for boosting investment, as 99% of UK exports to CPTPP member countries, including products like British whisky and automobiles, will enjoy zero tariffs.
The CPTPP, formerly known as the Trans-Pacific Partnership (TPP), was initially led by the United States as a strategy to counter China’s influence in the Asia Pacific region.
After the US withdrew from the agreement in 2017, China applied for membership in 2021. The UK government has reported that 1% of its employees work for CPTPP-owned companies, and joining the partnership is expected to further enhance trade and economic opportunities for British businesses.
Ian Stuart, CEO of HSBC UK, emphasized the significance of the UK’s accession to the CPTPP, stating that it represents a significant milestone for UK trade.
Stuart highlighted that ambitious British businesses will now have the opportunity to connect with dynamic growth markets for startups, innovation, and technology.
As the CPTPP aims to expand, the next country in line to begin talks for membership is China, following Taiwan, Ecuador, Costa Rica, Uruguay, and Ukraine in chronological order.
However, China’s potential admission may pose challenges due to existing tense relations with current members such as Japan, Australia, and Canada, the latter of which will hold the chair for the upcoming year.
The CPTPP currently consists of 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam. Joining this union of 500 million people is estimated by the International Monetary Fund to contribute to 15% of the world’s GDP.
Notably, the United States’ Indo-Pacific Economic Framework for Prosperity does not include market access provisions, and China is not among the 14 participating countries.
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