#UKbusinessgrowthinCPTPP

[thxnews]

UK Officially Joins Indo-Pacific Trade Bloc CPTPP

  UK's Accession to CPTPP Expected to Boost Investment and Employment New York Times, Sunday 16th July - Business and Trade Secretary Kemi Badenoch has officially signed the treaty, solidifying the United Kingdom's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The signing took place in New Zealand, marking the beginning of the UK's membership in a dynamic trade deal that spans 12 economies across Asia, the Pacific, and Europe.  

Promoting Prosperity and Expanding Market Access

Accompanied by an esteemed group of trade ministers from CPTPP member nations, including New Zealand, Canada, Japan, and Australia, Secretary Badenoch finalized the agreement, which follows extensive negotiations earlier this year. The UK government will now seek to ratify the agreement, subject to parliamentary scrutiny, while other CPTPP countries proceed with their own legislative processes.  

Driving Economic Growth and Job Creation

UK government celebrates CPTPP impact with new figures: 1 in 100 UK workers employed by CPTPP businesses, creating over 400,000 jobs. CPTPP membership to boost UK investment: Already at £182 billion in 2021, providing essential investor protections.   Benefits for British Businesses Leading industry figures expressed their enthusiasm for the opportunities presented by UK's formal accession to CPTPP. Ian Stuart, CEO of HSBC UK, stated, "The UK's formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world's most exciting growth markets for start-ups, innovation, and technology."   Stuart emphasized HSBC UK's commitment to supporting UK businesses in realizing their full potential and seizing global opportunities. Cath White, Head of International at Belvoir Farm, highlighted the advantages for UK goods exports, stating, "More than 99% of UK goods exported to CPTPP member countries will be eligible for zero tariffs."   This includes renowned British products such as whisky and cars. White emphasized that this agreement would open doors for UK producers to share their stories on a global scale, promoting British brands at a time when the world's attention is focused on the UK.   CPTPP's Impact on Employment and Economic Growth The government report shed light on the extensive economic impact of CPTPP membership. It revealed that CPTPP-related investment generated over £240 billion in turnover in London alone, with additional substantial contributions in the South East and East of England. In 2021 and 2022, CPTPP membership created 26,000 jobs, with 75% of employment in CPTPP-owned businesses situated outside of London. Notably, one in 50 jobs in the North East and one in every 25 jobs in the manufacturing sector were attributed to CPTPP.  

UK as a Trailblazer in CPTPP

The UK's accession to CPTPP represents a historic moment, as it becomes the first European member and the first new member since the formation of the trade bloc. This achievement would not have been possible had the UK remained in the European Union. With the UK's inclusion, CPTPP's combined GDP reaches an impressive £12 trillion, accounting for 15% of global GDP.  

Expanding Horizons and Empowering Trade

The UK government will now proceed with the necessary steps to bring the agreement into force, with expectations of implementation in the coming year. Membership in CPTPP holds significant benefits for the UK, as it will eliminate tariffs on more than 99% of current UK goods exports to member countries. This will enable dairy farmers, for example, to enjoy reduced tariffs on cheese and butter exports to Canada, Chile, Japan, and Mexico, expanding the UK's dairy market abroad. Additionally, CPTPP membership allows British businesses to operate more freely, with modern rules of origin fostering competitiveness. By diversifying supply chains and creating new export opportunities, the agreement enhances the flexibility of UK exporters. Moreover, the deal includes provisions to encourage investment, which is anticipated to increase in the UK. Inward investment stocks from CPTPP countries reached £182 billion in 2021.  

Gateway to Prosperity and Lower Consumer Prices

- UK's CPTPP membership unlocks new markets in the emerging Indo-Pacific region, driving global growth and opportunities for British businesses. - Reduced tariffs on imported goods, like fruit juices from Chile and Peru, offer UK consumers more affordable high-quality products. - Signing the CPTPP treaty solidifies the UK's position in a trade bloc with immense economic potential, targeting Indo-Pacific growth and market expansion. - The government is committed to implementing the CPTPP agreement, ensuring the UK thrives in this modern trade deal.   Sources: THX News, Department for Business and Trade & The Rt Hon Kemi Badenoch MP.  Read the full article