PwC comments on the UK joining the comprehensive and progressive agreement for Trans-Pacific Partnership

Matthew Alabaster, Trade Lead Partner at PwC, says:

“This is a significant achievement, as the UK is the first new country to join the eleven member trading bloc, which contains a dynamic group of countries with fast growing economies. The UK’s membership is also a practical demonstration of the Government's tilt to the Indo-Pacific region. Whilst it is not a prerequisite for the UK to have bilateral agreements with individual members, there are currently trade agreements in force with Japan and Singapore, agreements in principle with  Australia and New Zealand, and ongoing negotiations with Canada and Mexico. 

“As a member of CPTPP the UK will have unparalleled access to pacific markets, can expect that exports to other members will almost all be tariff free, and the agreement is expected to benefit all UK sectors, including the services sector. One of the major benefits will be largely tariff free access to the Malaysian market, as the UK does not have a free trade agreement with Malaysia.

“Overall it is estimated that 8.5% of UK goods and services exports are to CPTPP countries, and that the economic impact of accession would be an increase of 0.08% in GDP, although this is expected to increase as more countries join CPTPP (China, Taiwan and South Korea have expressed interest in acceding). Membership is expected to bring additional benefits in terms of the influence that the UK can bring in shaping the future development of the bloc, and our alignment with this dynamic and high growth part of the world. 

“At this stage the agreement is an agreement in principle only, and full ratification and implementation is expected to take some time.”