UK Joins Major Trade Group, Unlocking £2 Billion Growth Potential The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a full member, with the potential to add £2 billion annually to the economy in the long term.
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The CPTPP is one of the world's most significant trade blocs, encompassing 12 member nations—including Australia, Canada, Japan, and now the UK- which together account for a combined GDP of £12 trillion. The UK's accession is seen as a key post-Brexit move to strengthen trade ties with fast-growing markets across the Asia-Pacific region.
Economic analysts predict that the deal will provide a substantial economic boost across the UK. Scotland stands to gain £240 million, Wales £110 million, and Northern Ireland £70 million, with all regions of England also benefiting. The South East is expected to see the largest boost of £450 million, while the North West could gain £310 million.
UK businesses will face lower tariffs and fewer trade barriers when selling to CPTPP countries, with industries such as financial services, manufacturing, and food and drink set to reap the greatest rewards. The deal is expected to align with the government's broader economic agenda, supporting its Plan for Change by boosting household wages by £1 billion annually.
The UK's entry into the CPTPP marks a significant step in its post-Brexit trade strategy, with officials hopeful that the agreement will help drive economic growth and job creation across the country.
The UK's entry into the CPTPP coincides with progress on other significant trade negotiations, including with the Gulf Cooperation Council, India, Switzerland, and South Korea. These discussions form part of the government's dual approach to trade, which aims to rebuild relations with the European Union while also securing new deals with countries beyond Europe. The CPTPP agreement is a crucial step in expanding the UK's economic reach into the dynamic Asia-Pacific region, complementing efforts to strengthen trade ties with other key global partners.
Business and Trade 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."
