On 15 December 2024 the UK will accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ("CPTPP").
The CPTPP is a free trade agreement involving an ever growing number of countries in some of the world's most dynamic and fast growing economies.
This means that from 15 December 2024, UK businesses will be able to trade with the following countries under the CPTPP: Malaysia; Singapore; Brunei; Vietnam; Japan; Chile; New Zealand; and Peru. From 24 December 2024, UK businesses will also be able to trade with Australia under the CPTPP.
Thailand, the Philippines and South Korea (among others) have expressed an interest in joining the CPTPP, and other economies have formally applied to join the CPTPP, including in ASEAN Indonesia, representing strong interest and the potential for even greater international trade and investment opportunities in the future. It is reported that CPTPP countries, including the UK, have a combined GDP of £12 trillion. The anticipated further growth of the CPTPP membership is expected to increase the size and importance of this trading group, which once the UK has joined will reportedly account for approximately 15% of global GDP.
The benefits for UK businesses transacting pursuant to the CPTPP are numerous and are expected to include, among others: (1) the opening of new markets for service providers; (2) reduced tariffs on goods exports; (3) opportunities to diversify supply chains; (4) new export/import opportunities; and (5) streamlined digital and data provisions. It is expected that participation in the CPTPP will also help to provide a level playing field for businesses competing for business in different markets and to reduce the red tape involved.
Accession to the CPTPP also means that the UK and Malaysia will have their first trade deal. Given the long-standing ties between the two nations, and with Malaysia taking on the role of ASEAN Chair in 2025, this is an exciting time for further growth between two countries with already well-established investment ties.
The UK Government has established the following page as a tool for businesses to access resources that help maximise their utilisation of the CPTPP.
As an international law firm with offices in the UK, Malaysia, Singapore and other international markets, supporting businesses in cross-border trade and investment among a number of the CPTPP signatories is an important strategic focus for us, and so this milestone achievement, alongside Malaysia taking on the ASEAN Chair, is something we very much welcome and look forward to supporting.
Over the coming months, we will be sharing articles on the opportunities presented by the CPTPP for businesses and relevant sectors, with a particular focus on the relationship between ASEAN members and the UK.
