Joining the CPTPP: opportunities and challenges for UK business

On February 1, the UK government submitted its letter of intent to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a 11-member trade bloc in the Asia-Pacific region that makes up nearly 14% of total global GDP. This marked a significant step in the UK’s effort to advance a forward-thinking and independent trade agenda. The CPTPP is made up of established UK trading partners as well as rapidly developing emerging economies who are set to become permanent players in the global economy. The 11 members include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

This CBI report is being launched in the lead up to the official launch of negotiations this month and covers opportunities that CPTPP will provide UK business across the Asia-Pacific. While annual UK trade with this bloc already amounts to £110bn (more than UK trade with China), businesses should see the CPTPP as a chance to strengthen ties with a rapidly growing region. These areas include beneficial rules of origin, greater investment protections, rapid digitalisation of trade, increased demand for services, and opportunities for UK global leadership.

The report also outlines potential challenges the UK could face, including the CPTPP’s intellectual property provisions and their potential impact on UK IP law, a challenging investor-state dispute settlement chapter, and increased competition for consumer goods at home (particularly in agriculture).

Finally, the report outlines other key considerations for business, such as the political ramifications of the UK’s accession to CPTPP on the rest of the government’s trade agenda. The CBI urges officials to take care in ensuring the UK’s position for negotiation is not weakened by simultaneous efforts to negotiate 1-to-1 deals with key CPTPP members.

To get in touch with the CBI’s International Trade team, contact Hemi Bhatti or John Bleed.