UK Marks Historic Milestone by Joining Trans-Pacific Trade Partnership
The United Kingdom officially became the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15, 2024. This marks a significant milestone in the country’s post-Brexit trade strategy. The UK becomes the first European nation and first new member to join the Indo-Pacific trade bloc since its inception.
The CPTPP now spans 12 countries across five continents, covering approximately 500 million people and generating 15% of global GDP valued at £12 trillion. UK businesses can immediately begin trading under preferential terms with eight member countries:
- Japan
- Singapore
- Chile
- New Zealand
- Vietnam
- Peru
- Malaysia
- Brunei
The agreement will extend to Australia on December 24, with Canada and Mexico following after their ratification processes.
While economic benefits are projected to be modest—an estimated £2 billion annual boost representing 0.08% of GDP—the strategic importance is significant. The UK gains its first trade deals with Malaysia and Brunei, with over 99% of UK goods now eligible for zero tariffs across CPTPP markets. Key industries like whisky and automotive will benefit from substantial tariff reductions of up to 80% and 35% respectively in Malaysia.
Source: The Diplomat