The UK is a step closer to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The CPTPP is a trade agreement currently between 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The UK concluded negotiations to join the CPTPP in March and Kemi Badenoch, the Secretary of State for Business and Trade, formally signed the Protocol of Accession on 16 July during a visit to Auckland, New Zealand.
It is expected that the UK will enter the CPTPP in 2024 once the government has ratified the agreement and the other eleven members of the CPTPP complete their own legislative processes.
The benefits of joining the CPTPP for businesses in Wales and across the UK include access to new markets, opportunities to diversify supply chains and lower or zero tariffs for goods exports.
Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “The Chamber is excited to see the accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The accession of the UK to this agreement presents great opportunities for Welsh business, especially in the agri-food and manufacturing sectors.
“The tariffs on Welsh lamb to the countries of CPTPP will be greatly reduced, as well as tariffs on beef, pork, sugar, and other food goods. Welsh whisky will also be traded with Malaysia for the first time as the 80% tariff on it will be phased out.
“CPTPP will allow Welsh businesses to diversify their supply chains and establish exports to new markets, and it’s critical to ensure that SMEs wishing to export to the CPTPP countries for the first time are able to do so and receive appropriate guidance.
“The accession to CPTPP is a step in the right direction for UK international trade. While not comprehensive, the agreement acts as a strong new foundation for further international trade agreements and will hopefully help to stabilise the economy while boosting opportunities for enterprise in Wales.”
At Chambers Wales South East, South West and Mid, our policy and trade teams keep up to date with all the latest agreements, regulations and announcements which affect businesses in Wales who trade globally.
