The benefits of CPTPP for trade between Great Britain and the other member countries amount to approximately $6.5 billion, according to estimates by the World Trade Organization (WTO).
CPTPP liberalizes trade among countries with a combined population of 500 million and includes some of the world’s most dynamic economies.
With the United Kingdom among its members, it accounts for more than 14% of global GDP.
Benefits of CPTPP
The WTO estimates that the United Kingdom’s accession to CPTPP will boost bilateral trade by 4.9 billion pounds sterling (approximately $6.5 billion). This represents an increase over the levels projected for 2040.
Designed from the outset for expansion, CPTPP reaffirms its evolutionary nature by integrating the United Kingdom. Furthermore, it keeps the door open to new high-level economies within the trade bloc.
The benefits of the agreement will grow as progress is made on the accession of Costa Rica and Uruguay. Added to this are future applications for membership, which will always require the unanimous approval of member countries.
This accession grants the United Kingdom its first free trade agreements with Malaysia and Brunei. It thus expands beyond the scope of existing bilateral agreements with the other members and opens new trade markets.
Once the necessary ratifications are completed, more than 99% of the goods currently shipped by the United Kingdom to CPTPP partner countries will be completely exempt from customs duties.
The British government seeks to capitalize on the economic and strategic potential arising from its accession, while playing an active and constructive role within the treaty’s working framework.
High Standards
TIPAT is a plurilateral free trade agreement in the Asia-Pacific region. Comprising twelve countries, it eliminates tariffs and promotes the exchange of goods, services, and investment. It also establishes high regulatory standards for digital trade and intellectual property.
Unlike other trade agreements, CPTPP includes a chapter on state-owned enterprises. This chapter imposes strict disciplines to prevent government subsidies or privileges from creating unfair competition against private companies within the bloc.
It entered into force on December 30, 2018, for its first ratifying members. It currently comprises eleven founding countries—Mexico, Australia, Brunei, Canada, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam—along with the United Kingdom.