The elimination of U.K. tariffs under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) represents an ambitious opening. Furthermore, it is in line with the high standards required by this trade agreement.
This strategy aims to boost trade flows on a global scale. According to a report by the World Trade Organization (WTO), the UK applies a common tariff liberalization schedule to CPTPP partners for approximately 98% of its tariff lines.
Elimination of U.K. Tariffs
The UK’s tariff commitments will be fully implemented by 2033. However, there will be exceptions for Australia (2037) and New Zealand (2038).
Upon full implementation, a duty-free regime will apply to virtually all product lines for imports from New Zealand and Singapore. However, bananas will remain subject to duties, and at least 98.7% of product lines from the other partners will be liberalized.
Imports of products that remain subject to duties (based on the 2021–2023 average) were negligible. However, there is an exception in the case of Chile (0.5% of imports). This tariff reduction scenario is based on a framework of mutual reciprocity. Except for Australia, Chile, and Japan—and only for a very limited number of tariff lines—the United Kingdom benefits from the same liberalization granted by its CPTPP partners.
Liberalization Timelines for CPTPP Member Countries
For their part, member countries are also making progress on their respective timelines. Australia, Brunei Darussalam, New Zealand, and Singapore will fully liberalize their trade with the United Kingdom by 2033 at the latest. By 2038 at the latest, Japan will maintain tariffs on only 4.9% of its tariff lines. Meanwhile, in the case of Chile, Malaysia, Peru, and Vietnam, only 1% of their tariff lines will remain subject to duties.
Comparison Between CPTPP and Bilateral FTAs
It is important to analyze how these commitments coexist with previous agreements. When comparing the liberalization under CPTPP with that under the overlapping UK Regional Trade Agreements (RTAs)—which encompass 14 bilateral relationships—only Japan will liberalize a greater number of tariff lines in its bilateral Regional Trade Agreements (RTAs) with the United Kingdom.
The chronological development of the treaty explains the consolidation of this bloc. On December 30, 2018, CPTPP entered into force for six Parties: Australia, Canada, Japan, Mexico, New Zealand, and Singapore. It entered into force for Brunei Darussalam, Chile, Malaysia, Peru, and Vietnam between January 2019 and July 2023. Finally, the United Kingdom’s accession to CPTPP took effect in December 2024 for all Parties except Canada and Mexico.
Mexico’s Ratification and Bilateral Relations with the United Kingdom
On June 22, following Mexico’s ratification, the United Kingdom’s accession to CPTPP took effect, allowing both countries to apply the provisions of the agreement to one another.
TIPAT is a trade agreement that brings together 12 countries from the Americas, Asia, Oceania, and Europe: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and, as of now, the United Kingdom.
Mexico is a founding member of CPTPP, which has been in effect in our country since December 30, 2018.