The UK joins CPTPP

On Sunday 15 December 2024, the UK acceded to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). CPTPP is a Free Trade Agreement (FTA) between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

CPTPP currently accounts for about 500 million people and generates 13% of global GDP.  The UK concluded negotiations in 2023, and the UK’s accession has now been ratified by all countries but Canada and Mexico.

Being a member of CPTPP offers the UK several potential benefits. Firstly, the UK will have agreements with Brunei and Malaysia for the first time which will present opportunities to boost trade within these countries. Also, members aim to lower or remove tariffs and tariff rate quotas (TRQs) over time and give each other preferential terms.

It is worth noting that as part of the negotiations, the UK has agreed permanent inward TRQs for pork and beef. Previous analysis showed that these volumes are unlikely to be utilised unless there are dramatic changes to trading patterns. These TRQs are:

• Beef TRQ – starting at 2.6 Kt increasing in equal increments to 13 Kt by year 10 of the agreements
• Pork TRQ – starting at 10 Kt increasing in equal increments by 55 Kt by year 10 of the agreement

AHDB published modelling analysis looking into the potential impact of the UK joining CPTPP.  The results concluded that joining CPTPP will not cause dramatic changes to trade in the short term. Rather there is potential for modest increases in UK exports of beef, dairy and pork in the medium to long term. Further opportunities may be presented by other countries such as China, Taiwan, Ecuador, Uruguay and Costa Rica joining CPTPP. Furthermore, a number of CPTPP members are predicted to see significant growth in their food imports, particularly for red meat and dairy products, fuelled by a combination of population growth and economic development. This will be a driver for these longer-term benefits for UK red meat and dairy exports.

Market access

One of the key objectives of CPTPP is to enhance market access amongst the member countries. As discussed above, the UK already has trading relationships and FTAs with many of the countries. So, what are the benefits? CPTPP bolsters broader market access goals in several ways. It establishes a framework for tariff reduction and elimination which can open up new trade possibilities. In addition, CPTPP provides a platform to address non-tariff barriers such as regulatory standards, whilst also offering a mechanism for dispute resolution. In summary, the CPTPP has the potential to support market access objectives and foster productive discussions.