May 15, 2023
AGI News
It has been announced that the UK has signed a major trade deal to join the CPTPP. This is the biggest trade deal the UK has signed since Brexit, and forms an agreement with countries in Asia and the Pacific.
The UK is the only European country in the CPTPP, and with countries such as South Korea, Thailand and Taiwan expressing an interest to join, the CPTPP could become one of the largest trade agreements in the world.
So what is the CPTPP and how will it benefit the UK?
CPTPP stands for ‘The Comprehensive and Progressive Agreement for Trans-Pacific Partnership’, and is a trade agreement between 11 nations. The UK is the first non-founding nation to join the CPTPP, and the 11 nations in the trade agreement can be found below:
- Australia
- Brunei
- Canada
- Chile
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore, and
- Vietnam
These nations are home to 500 million people, and combined they account for 13% of the world’s income. So joining the CPTPP will open the door to further trade between the UK and the founding nations. UK SME’s and ecommerce retailers should really benefit from the UK joining the CPTPP, as it will open the door to new markets and supply chains.
In addition to the new trade opportunities, Sky News reported that the agreement also includes making up to 99% of UK goods exported to the bloc now eligible for zero tariffs. As tariffs are often seen as a barrier to trade, this will have a positive impact on any UK companies exporting to the founding nations. And it’s not just exporters of physical goods who should benefit, with the UK’s financial services set for a welcome boost too.
In fact, the UK Government has estimated joining the CPTPP will boost the UK economy by £1.8 billion, and with reduced tariffs and simplified procedures, it should be seen as a positive for UK businesses.
So how can we help you?
Here at AGI we have a huge amount of experience when it comes to shipping goods all around the world. If you have a requirement for Air Freight, Sea Freight, or Road Freight, you can contact the Head Office team by calling 0330 004 1020 or sending an e-mail to agisales@agi.global. And for all of the latest AGI news, don’t forget to follow us on LinkedIn and Facebook!