{"id":12145,"date":"2023-04-07T12:30:03","date_gmt":"2023-04-07T12:30:03","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=12145"},"modified":"2025-04-23T09:32:39","modified_gmt":"2025-04-23T09:32:39","slug":"what-the-cptpp-could-mean-for-the-uks-relationships-with-china-and-asia","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-the-cptpp-could-mean-for-the-uks-relationships-with-china-and-asia\/","title":{"rendered":"What joining the CPTPP means for the UK and China"},"content":{"rendered":"

On 31 March 2023, the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), having formally applied in February 2021. The deal will have economic benefits but could create friction with China, which has also applied for membership<\/h2>\n

By joining the CPTPP, the UK becomes part of a club of 11 countries in the Indo-Pacific (Japan, Malaysia, Vietnam, Australia, Singapore, Brunei, New Zealand, Canada, Mexico, Peru and Chile) that generates nearly 14% of the world\u2019s GDP.<\/p>\n

The UK is the first European country to join the agreement, and the largest economy after Japan \u2013 or it will be, until China\u2019s application is successful.<\/p>\n

The key focus of the CPTPP is increasing access to each other\u2019s markets, reducing or eliminating up to 98% of tariffs, but the CPTPP\u2019s policies include gold standard provisions regulating the extent to which member states can support state-owned enterprises (SOEs), the most detailed provisions for IP protection to be found in any FTA, and Rules of Origin and mobility provisions that could see the Asia-Pacific rim become one of the busiest areas in the world in terms of the movement of goods and people.<\/p>\n

\"launchpad<\/a><\/p>\n

What are the benefits of the UK joining the CPTPP?<\/h4>\n

The UK government estimates<\/a> that the CPTPP could add \u00a31.8 billion to UK GDP over the next few decades, helping to offset some (but not much) of the negative effects of Brexit.<\/p>\n

The UK already has trade agreements with nine out of the 11 CPTPP members, with exports totalling \u00a360.5 billion in 2022. The removal of tariffs with the remaining two members \u2013 Malaysia and Brunei \u2013 will benefit industries such as whisky, with tariffs on whisky exported from the UK to Malaysia cut from 80% to 0%.<\/p>\n

It will also benefit the sale of services by UK providers, slashing red tape and ensuring that UK investors get the same treatment as domestic companies when they put money into projects in CPTPP member states. This will also be supported by modern rules for digital trade.<\/p>\n

Business and Trade Secretary Kemi Badenoch said<\/a>: \u201cJoining CPTPP will support jobs and create opportunities for companies of all sizes and in all parts of the UK. It is about giving British businesses improved access to the countries that will be a gateway to the wider Indo-Pacific region which is projected to make up the majority of global growth in the future.\u201d<\/p>\n

However, it is the future expansion of the CPTPP that could really benefit the UK \u2013 not just China\u2019s potential accession but also Ecuador, Costa Rica and Uruguay, all of which have submitted formal applications. South Korea and Thailand have also expressed an interest.<\/p>\n