Britain Announces Trans-Pacific Trade Agreement to Take Effect by December 15, Reports Reuters

LONDON (Reuters) – On Thursday, the British government announced that its agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will take effect by December 15 this year, following the final ratification needed.

The CPTPP is a free trade agreement established in 2018 among 11 countries, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The United Kingdom will be the only European nation in the CPTPP and the first new member to join since the agreement’s creation.

Britain finalized negotiations to enter the pact in March 2023 and signed the accession treaty in July of that year. However, ratification was necessary from its own government as well as at least six other member nations.

The UK government announced that Peru became the sixth country to ratify the terms of its accession, following Japan, Singapore, Chile, New Zealand, and Vietnam. The agreement will be implemented with those countries this year, and other members will follow suit as they complete their ratifications.

“This is good news for UK businesses, who are now one step closer to being able to take advantage of the opportunities our membership of CPTPP will bring,” stated Douglas Alexander, Minister of State for Trade Policy.

The CPTPP mandates countries to eliminate or significantly reduce tariffs, make firm commitments to opening markets for services and investments, and adhere to regulations regarding competition, intellectual property rights, and protections for foreign companies.

The British government estimates that over 99% of current UK goods exports to CPTPP nations will be tariff-free once the deal is implemented, which could potentially enhance the UK economy by around £2 billion ($2.6 billion) annually by 2040.