The UK has recently been accepted into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade bloc that includes Japan, Australia, and several other countries.
This move is being hailed as the UK’s most significant trade agreement since Brexit, and as a significant step towards increasing trade opportunities and strengthening economic ties between the UK and the Asia-Pacific region.
The CPTPP was originally formed in 2018. The agreement was designed to promote economic integration and reduce trade barriers between its member countries, which currently include Japan, Australia, Canada, New Zealand, Chile, Peru, Singapore, Vietnam, Brunei, and Malaysia.
The CPTPP covers a range of sectors, including agriculture, manufacturing, and services. It also includes provisions on intellectual property, labour standards, and environmental protection. The agreement is expected to increase trade between member countries by reducing tariffs and other trade barriers, making it easier and more cost-effective for businesses to trade with each other.
For the UK, joining the CPTPP could provide a much-needed boost to its post-Brexit economy. The country has been looking to expand its trade relationships with non-European countries to reduce its reliance on the EU market.
However, the UK’s entry into the CPTPP is not without its challenges. The agreement is highly complex, with many different provisions and regulations that must be adhered to. The UK will need to negotiate and implement a range of new trade agreements with CPTPP member countries, which could take time and require significant resources.
If imminent membership of the CPTPP delivers the boost for economic growth and geopolitical relations that the Government anticipates, it will be welcome news for BIFA members that are responsible for the freight forwarding and logistics services that underpin much of Britain’s visible import and export trade.
BIFA looks forward to supporting its members as they seek to benefit from any opportunities the new agreement may bring, which will depend on how the improved access to the 11 high growth nations that are involved is achieved.Steve Parker, BIFA Director General
The UK’s accession to the CPTPP may only yield small benefits to the nation’s business in the short term, but the access to innovation and increased productivity which the deal will deliver longer term will be of benefit to the overall health of the UK economy.
As a nation with longstanding and excellent trading links worldwide, UK PLC stands ready to benefit from the opportunities the new agreement will provide thanks to the country’s interconnected supply chain.
The success of the agreement will stand on improved access to high growth markets including simplification of customs processes and future opportunities to digitise the movement of goods to speed connections between the UK and the 11 nations involved.Kate Jennings, Logistics UK’s Director of Policy
As the UK continues to navigate its post-Brexit future, partnerships like the CPTPP could play an important role in shaping the country’s economic and political relationships with the rest of the world.