The bloc is home to over 500 million people and will have a total GDP of £11 trillion once the UK joins.
As the fifth largest economy in the world by GDP in 2021 and with a market of 67 million consumers, the UK is an attractive market for Vietnam. Expanding CPTPP to include the UK will help CPTPP to diversify their supply chains, remove trading barriers and encourage more trade for our businesses.
Negotiations, which began in June 2021, concluded after an intense round of talks in Vietnam, with representatives from all CPTPP member countries agreeing that the UK has reached conclusion of its accession process to join CPTPP.
The UK is the first European country to join the dynamic trade bloc, and the first new member since CPTPP was creating, taking it from a Pacific agreement to a truly global one.
CPTPP creates opportunities to deepen our trading links across the Asia-Pacific region, providing a range of different opportunities with the different countries. CPTPP membership will complement and reinforce existing bilateral trade agreements we have already signed, including those with Australia, Japan, New Zealand, Singapore and Vietnam.
Accession could mean lower tariffs on some exports to the UK which are not already removed through the UK’s bilateral agreements with member countries, including Viet Nam.
UK Business and Trade Secretary Kemi Badenoch said: “Our accession to CPTPP sends a powerful signal that the UK is open for business and using our post-Brexit freedoms to reach out to new markets, including in the Asia Pacific region, and grow our economy.”
“Joining this influential trade bloc will help us to shape the rules of global trade with like-minded nations, and work even closer together on our shared priorities of prosperity, security and free and fair trade.”
UK membership could also benefit businesses and investors in all CPTPP countries through modern rules that make it easier to establish, operate investments and do business in the UK. It would send a powerful signal that the UK as an independent trading nation will continue to champion free and fair trade, fight protectionism and remove barriers to trade at every opportunity, helping to reinforce the rules-based international system at a critical time in the history.
Five rounds of in person talks with UK and CPTPP chief negotiators took place in total, with many more intersessional and bilateral negotiations alongside, and for the final round in Vietnam alone more than 150 delegates from all CPTPP member countries took part.
As one of the largest free trade areas in the world, CPTPP accounted for 12 percent of global GDP in 2021. This would rise to 15 percent with the UK’s accession, adding substantial value to this huge free trade area.
The UK and CPTPP members will now take the final steps required for the UK to formally sign in 2023.
As for Vietnam, joining CPTPP will complement our existing UK-Vietnam Free Trade Agreement, upgrading our bilateral relationship with additional preferential tariffs.
The removal of trade barriers will support our mutual economic security by deepening participation in each other’s supply chains and diversifying our trade. These benefits will increase opportunities for trade, supporting our economies and increasing opportunities for our businesses.
His Majesty’s Ambassador to Vietnam, Iain Frew said: "This is an important milestone for the UK's trade relations with Asia-Pacific countries. UK's accession to CPTPP will contribute additional economic strength to this progressive and dynamic trade alliance, adding £2 trillion to the combined GDP of the CPTPP bloc.”
“We thank all CPTPP members for their cooperation and support during the accession process. It is particularly meaningful that Vietnam hosted the final round of negotiations on UK accession, as we celebrate 50 years of diplomatic ties between the UK and Vietnam in 2023. I am pleased that CPTPP will complement our bilateral FTA and further boost our growing trade relationship with Vietnam."
His Majesty Trade Commissioner for Asia-Pacific, Natalie Black said:“CPTPP is one of the world’s most progressive trade agreements and the UK’s accession will take it from a Pacific agreement to a truly global one. As its second biggest member, our entry will boost the combined GDP of the bloc from £9 trillion to £11 trillion and provide greater access to 67 million consumers across the UK.”
“Today’s announcement will help British businesses grow their trade with seven dynamic Asia Pacific economies, particularly Malaysia and Brunei which the UK does not currently have a bilateral agreement with.”
