On 15 December 2024, the UK officially became the first European nation to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This major trade bloc connects the UK to 11 dynamic economies across the Indo-Pacific region, providing access to markets and a boost to businesses, particularly SMEs.
The CPTPP is not just a trade agreement but a platform for growth, enabling UK manufacturers and SMEs to expand into new territories, reduce trade barriers, and integrate into global supply chains. UK businesses can now trade under CPTPP with the following countries:
From 15 December 2024:
• Brunei
• Chile
• Japan
• Malaysia
• New Zealand
• Peru
• Singapore
• Vietnam
From 24 December 2024:
• Australia
Pending Ratification:
• Canada
• Mexico
Together, these economies represent almost 15% of global GDP, equivalent to £12 trillion annually, presenting vast growth opportunities for UK businesses. The UK’s accession to CPTPP marks a major step in its global trade strategy, creating new opportunities for SMEs and manufacturers to thrive internationally. As the CPTPP grows, with countries like Costa Rica and Indonesia expressing interest in joining, UK businesses are set to benefit from further expansion.
Why CPTPP Matters to UK SMEs
SMEs are the backbone of the UK economy, making up 99.8% of UK businesses and employing over 16.6 million people. Despite their success domestically, many SMEs face challenges when entering new international markets, such as navigating complex tariffs, customs procedures, and supply chains.
CPTPP addresses these issues directly, offering key benefits:
• Lower tariffs: Reduced or zero tariffs on UK exports to member countries.
• Simplified trade: Streamlined customs procedures and trade facilitation provisions.
• Improved market access: Sectors like food and drink and advanced manufacturing benefit from modern “rules of origin” provisions, making it easier to export products using components sourced across CPTPP countries.
• E-commerce and digital trade: Provisions that help SMEs overcome barriers to digital trade, ensuring they can compete effectively in global markets.
Practical Guidance for Businesses
To help UK manufactures maximise the opportunities provided by CPTPP, resources and guidance are now available on the Department for Business and Trade’s great.gov.uk platform, including:
• Rules of Origin: Guidance on qualifying for preferential tariffs.
• Customs and Tariffs: Tools to check duty rates and procedures for CPTPP member countries.
• Export Support: Access to support services to navigate new export markets.
To learn more about the benefits for your business and access practical guidance on trading with CPTPP countries, visit the individual market pages on the CPTPP great.gov.uk site to access 70+ practical guidance documents on how to utilise CPTPP. These cover topics including as rules of origin, business mobility, and tariff reductions. You will also find detailed sector-specific information and commercial opportunities available within these markets.
You will also be able to access CPTPP tariff information using the check how to export goods online tool from 15 December 2024 (for ratified countries). For countries where the UK has the bilateral trade agreements and CPTPP, the tool will also show the different tariff rates. The UK Integrated Online Tariff Tool also lets you check import duties and allows you to check the status of available tariff rate quotas.
To make contact with Made in Britain and find out more about the CPTPP, or learn more about Made in Britain’s upcoming international trade activity please email trade@madeinbritain.org