CPTPP: First trade agreement between the United Kingdom and Malaysia
The Trans-Pacific Partnership Agreement (CPTPP) would be the first trade agreement between the United Kingdom and Malaysia.
On March 31, the United Kingdom substantially concluded negotiations to join CPTPP.
As a result, CPTPP will provide UK businesses with much better access to an economy with a GDP of £271 billion by 2021, which will support employment in key UK sectors and could boost UK exports of services to Malaysia.
According to HM Revenue and Customs data, UK exports to Malaysia totaled $2.131 billion in 2022.
Among the British products sold in that direction, electronic circuits ($567 million), telephones ($541 million) and vegetable or animal fats ($320 million) stood out.
In contrast, British imports from Malaysia totaled 4,719 million dollars, and these purchases were dominated by automobiles (388 million dollars), precious metals in colloidal state and precious metal compounds (274 million) and turbojets, turbopropellers and other gas turbines (200 million).
CPTPP is a free trade agreement (FTA) that includes 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
According to the British government, CPTPP goes beyond the free trade agreements that the UK has with most of its members.
Eventually and once this trade agreement comes into force, tariffs of around 80% on British whisky exports to Malaysia will be eliminated, which will help the UK gain a larger market share.
British car manufacturers will also benefit from the phased elimination of 30% tariffs on British car exports to Malaysia.
British companies such as Mak Tok, a Sheffield-based chili paste manufacturer, could benefit as they seek greater access to the Malaysian market.
Overall, as a member of a bloc where most imports of goods are zero-tariff, consumers and businesses could benefit from greater choice, quality and affordability.
This should include cheaper import prices for high-quality consumer goods such as fruit juices from Chile and Peru, honey and chocolate from Mexico, and vacuum cleaners from Malaysia.