Key updates for UK Businesses
As of 15 December 2024, the UK acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the first European nation to join the trade bloc.
The CPTPP is a free trade agreement involving an ever-growing number of countries in some of the world’s most dynamic and fast growing trading economies, representing a combined GDP of approximately £11 trillion. By joining, the UK has gained access to a network of markets spanning the Asia-Pacific and the Americas, which collectively account for around 15% of global trade.
Through the CPTPP, UK businesses will now be able to trade with the following countries: Malaysia; Singapore; Brunei; Vietnam; Japan; Chile; New Zealand; and Peru. In addition, from 24 December 2024, UK businesses will be able to trade with Australia, also under the terms of the CPTPP. For UK businesses, this represents a significant opportunity to diversify trade partnerships and international markets.
Thailand, the Philippines and South Korea (among others) have expressed an interest in joining the CPTPP, and other economies have formally applied to join the CPTPP, including in ASEAN Indonesia, representing strong interest and the potential for even greater international trade opportunities in the future.
What does it mean for UK Businesses?
The benefits for UK businesses are numerous and are expected to include, among others:
- reduced tariffs across a wide range of export goods. This includes sectors such as food and drink, automotive, and pharmaceuticals
- opportunities to diversify supply chains
- new export/import opportunities
- the opening of new markets for service providers
- streamlined digital and data provisions.
It is expected that participation in the CPTPP will also help to provide a level playing field for businesses competing for business in different markets and to reduce the red tape involved.
The UK already has bilateral trading agreements with nine of the 11 members, but no prior agreements with Malaysia and Brunei, providing new opportunities in these markets.
As Holly Piggott, Alinea Customs Director explains, “The CPTPP connects us to a significant trade bloc and the fast-growing region of the global economy. It will create new opportunities for importers and exporters with more favourable trade rules for manufacturers looking to sell goods to other countries. It also introduces complexities such as compliance with varied regulatory frameworks and our experts are at hand to help UK businesses navigate this new trading landscape.”
The UK Government has established an online tool for businesses to access resources that help maximise their utilisation of the CPTPP: https://www.gov.uk/government/collections/the-uk-and-the-comprehensive-and-progressive-agreement-for-trans-pacific-partnershipcptpp
Alinea Customs offers professional customs clearance and consultancy services, legal advisory on supply chain agreements, and customs training to support businesses in navigating international trade, customs and regulations.
For more information about Alinea Customs and its services, visit www.alineacustoms.com.
