UK’s CPTPP Membership: Post-Brexit Trade Strategy

The UK government’s interest in joining the CPTPP was driven by several factors. Firstly, the agreement represents a pathway to strengthen economic ties with dynamic, fast-growing economies in the Asia-Pacific region. For instance, countries like Japan, Singapore, and Vietnam are important trading partners for the UK, and the CPTPP opens new opportunities to expand these relationships. By joining the agreement, the UK can secure preferential access to these markets, promoting exports, especially in sectors where the UK excels, such as financial services, technology, pharmaceuticals, and advanced manufacturing.

Furthermore, the UK’s membership in the CPTPP is seen as an important step towards establishing itself as a leading advocate for free trade in the post-Brexit world. The UK has always championed the benefits of free trade and market openness, and joining the CPTPP helps reaffirm this commitment. The CPTPP is not just about reducing tariffs on goods; it also includes provisions on services, investment, intellectual property, and regulatory coherence. These are areas where the UK, with its advanced services sector, can leverage its strengths. As a member of the CPTPP, the UK gains a platform to influence trade rules that benefit its own industries, while also promoting high standards of governance and sustainable development across the region.

The CPTPP also allows the UK to benefit from a more diversified trade portfolio. Before Brexit, much of the UK’s trade was concentrated within the European Union. As the UK seeks to establish a more global approach to trade, the CPTPP offers access to markets that are growing faster than

Europe’s. According to the UK government, joining the CPTPP could add as much as £1.8 billion to the UK economy and open up new export opportunities worth billions of pounds. Additionally, the agreement includes countries that are seen as key players in the global economy, such as Japan and Australia, as well as emerging economies like Malaysia and Vietnam, offering the UK access to both established and fast-growing markets.

The process of negotiating the UK’s accession to the CPTPP has been extensive, with the UK formally applying to join in 2021 and completing a year-long negotiation period. The final agreement reached in 2023 was the result of extensive talks with all 11 CPTPP members. One of the challenges the UK faced was aligning its existing trade practices with the rules and standards of the CPTPP, particularly given the country’s pre-Brexit regulatory environment, which was largely shaped by EU law. There were also concerns about whether the UK would be able to secure the same level of preferential treatment as other member countries, especially in terms of market access for certain sectors, such as agriculture and automotive products. However, the government ultimately secured agreements that reflected the UK’s priorities, allowing it to enter the CPTPP without major trade disruptions.

In addition to economic benefits, the UK’s accession to the CPTPP has broader geopolitical implications. As the world’s trade dynamics shift and the US and China engage in increasing trade tensions, regional partnerships like the CPTPP offer an alternative model for economic cooperation. By joining this agreement, the UK is not only signaling its commitment to free trade but also its intention to deepen ties with nations in the Asia-Pacific region, many of which are important strategic partners. The UK is also positioning itself as a bridge between the Pacific and Atlantic economies, which could prove valuable as global trade flows evolve in the coming years.

The CPTPP is often seen as a progressive trade agreement, one that incorporates modern provisions on digital trade, environmental standards, labor rights, and inclusivity. For the UK, these elements align with the government’s broader international goals, which include promoting environmental sustainability, tackling climate change, and ensuring that trade contributes to social and economic development. By adhering to these progressive standards, the UK is not only looking to boost its trade profile but also to maintain its leadership on global issues that require international cooperation.

While the UK’s accession to the CPTPP is widely viewed as a positive step forward, it is not without its critics. Some argue that the benefits of joining the CPTPP may be minimal. Prior to joining the CPTPP, the UK already had trade agreements with most of these countries as part of its EU membership, which have since been maintained. The only countries without existing deals were Brunei and Malaysia, together accounting for less than 0.5% of the UK’s total trade. Even with some adjustments to its trading arrangements with other members, the overall economic boost from the expanded agreement is projected to be modest—around 0.08% of GDP over the next decade, based on the government’s estimates. Others express concerns that the UK might have to make compromises on issues like agriculture or labor standards, which could affect domestic industries and workers. For example, it is agreeing to reduce tariffs from 12% to 0% on imports of Malaysian palm oil, which has been criticized for contributing to deforestation. Nevertheless, the government remains steadfast in its belief that the CPTPP represents an important opportunity for the UK to diversify its trade relationships, boost its global standing, and secure long-term economic growth.

In conclusion, the UK’s accession to the CPTPP is a landmark development in the country’s post-Brexit trade strategy. It reflects the UK’s desire to forge closer economic ties with dynamic economies in the Asia-Pacific region, while also asserting its commitment to free trade, regulatory reform, and global governance. As the UK continues to navigate a complex and shifting international landscape, membership in the CPTPP offers both challenges and opportunities. The true impact of this decision will only become clear in the years to come, but the UK’s participation in one of the world’s most significant trade agreements is a testament to the country’s enduring commitment to shaping the future of global trade.

By Yuxing Tao