The UK will officially join the trans-pacific trade group by the end of the year in a move that could boost the economy by around £2bn annually.
Britain has secured the final ratification required to ascend to the Comprehensive & Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free trade area spanning five continents and almost 600 million people once the UK joins.
The agreement will now officially enter into force by 15 December 2024 following Peru’s ratification of the UK’s request to join the bloc.
Britain will become the only European nation to join the 11-member trade group, which comprises Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Even though the UK already has bilateral agreements with many of the countries in the CPTPP, this will still be one of the biggest post-Brexit trade deals secured by the UK government since the Free Trade Agreements with Australia and New Zealand last year.
More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal comes into effect, strengthening the government’s exports growth strategy.
The Department for Business and Trade (DBT) predicted the agreement could boost the economy by around £2bn a year by 2040.
The Agriculture & Horticulture Development Board (AHDB) has also predicted that the UK could see exports of meat increase by up to 60% as a result of the trans-Pacific trade deal.
However, the deal has also come under intense scrutiny from environmental and animal welfare campaigners, who claim lowering tariffs on goods from CPTPP countries could result in more imports of food produced to lower standards.
Read more: Joining the CPTPP is a gateway to lower food standards
It was Rishi Sunak’s Conservative government that was in charge when the UK formally signed the treaty in July last year. However, official ascension required the ratification by the UK and at least six other member states.
Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam.
New trade policy minister Douglas Alexander said: ”This is good news for UK businesses, who are now one step closer to being able to take advantage of the opportunities our membership of CPTPP will bring.
“My message to businesses is to get in touch with the Department for Business & Trade to find out how CPTPP could benefit your business, if you haven’t already.
”We’re extremely grateful to all the CPTPP partners that have already ratified our accession and look forward to more doing so over the coming months.”
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