This morning (July 16) in New Zealand, British Business and Trade Minister Kemi Badenoch officially signed an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), making the UK a new member of the 12-economy trade bloc.

The agreement was signed by the British Minister, along with New Zealand Trade Minister Damien O'Connor, Vietnam's Minister of Industry and Trade Nguyen Hong Dien, Canada's Trade Minister Mary Ng, Japan's Economic Revitalization Minister Goto Shigeyuki and Australia's Deputy Trade Minister Tim Ayres.

The signing ceremony is a confirmation of Britain’s entry into the trade bloc, after negotiations concluded earlier this year. The UK government said it would take the necessary steps to ratify the agreement, including parliamentary scrutiny, while other CPTPP member states complete their domestic legal processes.

UK Business and Trade Secretary Kemi Badenoch said the CPTPP would be a huge boost for British businesses and add billions of pounds to trade, while opening up huge opportunities and unprecedented access to a market of more than 500 million people.

“We are using our position as an independent trading nation to join a dynamic, growing and forward-looking trading bloc that will boost the UK economy and create hundreds of thousands of jobs,” said Kemi Badenoch.

The CPTPP was signed in 2018 and came into effect in Vietnam in early 2019. The agreement includes 11 member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Singapore, New Zealand, Peru and Vietnam. Together, these countries have a population of about 500 million. The International Monetary Fund (IMF) estimates that with the UK's participation, this group would account for 15% of global GDP.

The UK has been studying the possibility of joining the CPTPP since early 2018, in order to stimulate exports after Brexit. They have applied to join the CPTPP since 2021.

The British government estimates that the agreement will reduce tariffs on imports of cars, wine and dairy products. It will add £1.8 billion ($2.2 billion) to Britain’s GDP each year over the long term, a figure that could rise further if more countries join.

The CPTPP is a complementary agreement to the free trade agreements (FTAs) that the UK has with most member countries. It will also give UK businesses more choice on the terms of trade. The UK has already reached new trade agreements with Australia, New Zealand and Japan following Brexit.

Minh Son