Conclusion of Negotiations on the Accession of the United Kingdom … – GOV.UK

Introduction

The Government has substantially concluded negotiations on the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free trade agreement (FTA) including 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

CPTPP is a trade bloc that is populated by around half a billion people with a joint gross domestic product (GDP) of £9 trillion in 2021. The combined GDP of the 11 CPTPP members and the UK was worth around £11 trillion in 2021.[1] In the 4 quarters to the end of Q3 2022, trade between UK and CPTPP was worth £110.9 billion, representing around 6.8% of total UK trade.[2] UK exports to CPTPP were worth £60.5 billion over the same period.

Joining CPTPP shows how the Government is taking advantage of its independent trade policy, championing openness, and doing trade deals that work for the UK. Being part of CPTPP will deliver new opportunities for growth in a way that is tailored to the UK’s economy and reflects the future of the global economy.

This comprehensive agreement will support UK businesses by making it easier for them to trade with CPTPP Parties. It will facilitate innovation and provide consumers with more choice. CPTPP will generate long-term benefits for both the UK and CPTPP, support UK jobs and provide opportunities for growth across the UK. Businesses in all parts of the UK are expected to benefit. CPTPP is a gateway to the wider Indo-Pacific region, which is expected to account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come.[3] CPTPP, together with the Windsor Framework, will give Northern Irish businesses full unfettered access to the rest of the UK and unique access to the EU market as well as preferential access to this dynamic bloc.

Joining CPTPP will link the UK to one of the most dynamic trading areas in the world, a key aim of the Integrated Review. It puts the UK at the heart of a dynamic group as the world economy increasingly focuses on the Indo-Pacific region. CPTPP’s strong rules will benefit the UK’s businesses, and us joining will help strengthen international consensus in these areas.

The negotiation outcome will be set out in a Protocol of Accession that is now undergoing legal review. This document and the market access schedules will be published at signature.

When a signed treaty text is laid in Parliament, it will be accompanied by an Explanatory Memorandum and the Government will publish an independently scrutinised impact assessment.

Once the agreement is signed, it will be subject to pre-ratification scrutiny under the Constitutional Reform and Governance Act 2010 (CRaG), and any legislation required to implement the agreement will need to be passed. Prior to commencing scrutiny under CRaG, the Government will commission and publish the advice of the independent Trade & Agriculture Commission, as well as laying its own report under section 42 of the Agriculture Act 2020.

In addition, CPTPP Parties will need to complete their own domestic ratification procedures to approve the UK’s accession. Entry into force will take place once both the UK and CPTPP Parties have finished their legislative processes.

Benefits of the UK’s Accession to CPTPP

A gateway to growth

CPTPP is a vast free trade bloc consisting of 11 sovereign countries spanning the Asia Pacific and the Americas. It is a gateway to the wider Indo-Pacific region, which will account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come.[4] Joining will strengthen our ties with some of the world’s most dynamic economies, with a combined GDP of £11 trillion once the UK joins.[5]

CPTPP was created to expand and as it grows the UK will stand to benefit from access to new markets. Economies including Costa Rica, Ecuador and Uruguay have formally applied to join CPTPP. Thailand, the Philippines, and South Korea have also expressed an interest in joining. If these economies were to join CPTPP with the UK, the combined 2021 GDP would increase to just over £13 trillion, an expanded group which covered 10% of all UK exports in the 4 quarters to the end of Q3 2022.[6] [7] Accession puts the UK at the heart of a dynamic group of sovereign countries, including Vietnam which is predicted to be one of the fastest growing economies in the next decades.[8]

Opening new markets for UK services providers

CPTPP is one of the most modern trade agreements in the world, with ambitious services provisions that are ideally suited to the UK; the world’s second largest services provider.[9] The UK already sells more services than we do goods to CPTPP members, worth £31.9 billion, including £2.3 billion in business services such as auditing, accounting, and legal services to Australia, £1.3 billion in transportation services to Singapore, and £1.4 billion in insurance and pension services to Canada.[10] [11]

Red tape will be slashed, and UK businesses will be operating on a par with local firms, bringing new benefits to UK businesses like greater certainty around licensing procedures and ensuring independent and impartial regulators. Companies such as Standard Chartered and their clients are likely to benefit from smoother access to markets such as Singapore, Malaysia, and Vietnam.

Data flows

Digital trade is creating a new global economy, with remotely delivered services from the UK to CPTPP worth £20.5 billion in 2020.[12] Data flows are vital for modern trade, enabling everything from more efficient manufacturing and supply chains to more reliable infrastructure. Joining CPTPP will help remove the barriers our companies face like data localisation requirements, ensuring data can flow between the UK and CPTPP members.

The City of London Corporation says accession to the bloc will help the UK become a leader in digital trade, with modern rules on data and freer access to each other’s services sectors. The bloc is committed to the highest data protection standards, so British business can expand into CPTPP markets with confidence, ensuring that individuals and businesses know their data and intellectual property are safe.

Benefitting UK exporters – cutting tariffs on goods exports

Over 99% of our goods exports to CPTPP member countries will be eligible for zero tariffs, improving goods market access for British firms.[13] Businesses selling key UK exports such as cars and machinery will benefit from the removal of tariffs. In the long run, joining CPTPP could lead to a £1.7 billion boost to UK exports to other CPTPP countries.[14] Exporters of dairy products, including cheese and butter, will get greater access to lower tariffs in Canada, Japan, and Mexico, building on the £23.9 million of dairy products we exported to these countries in 2022; and exporters of chocolate will benefit from zero tariffs on exports to Mexico and Malaysia.[15]

The removal of tariffs should also help UK businesses, such as Derbyshire-based Denby Pottery, be more competitive and reach CPTPP’s vast consumer base. Companies like the Conker Distillery could gain from new opportunities to export their Conker Coffee Liqueur.

Benefitting UK exporters – new opportunities from diversifying supply chains

Diversifying British supply chains will give businesses the ability to increase economic resilience by deepening our trading links across the Asia-Pacific and Americas. Modern ‘rules of origin’ could make British businesses more competitive by allowing them to trade more freely across the bloc and take advantage of new export opportunities. For example, UK automotive manufacturers could sell car engines tariff-free to a car maker in the bloc, who could then sell their cars tariff-free to any member country. This will also help exporters diversify their supply chains, making it easier for companies to buy and use raw materials from across the bloc.

Benefitting the whole of the UK

CPTPP will support jobs and create opportunities for UK businesses in every part of the UK, from beverage producers in Scotland, to manufacturers of machinery in Wales, to car manufacturers in Northern Ireland and the West Midlands. Total UK exports to CPTPP countries were worth £60.5 billion in the 4 quarters to the end of Q3 2022.[16]

Joining the bloc will help companies like Wales-based AI company, AMPLYFI, reach new markets through CPTPP’s ambitious services and digital provisions. CPTPP could also benefit companies including Northern Ireland-based Lowden Guitars and Scotland-based Cyacomb to grow their exports to new markets.

A trade deal with Malaysia for the first time

CPTPP goes above and beyond the existing FTAs that we have with most CPTPP members. And joining CPTPP means the UK will have a trade deal with Malaysia for the first time. This will give UK businesses much better access to an economy worth £271 billion in GDP in 2021, which will support jobs across key sectors in the UK and could boost our services exports to Malaysia which were worth £1.4 million in the 4 quarters to the end of Q3 2022.[17] [18]

Tariffs of around 80% will be eliminated on UK exports of whisky to Malaysia over time, helping the UK to get a larger share of the market. UK car manufacturers will also benefit from the staged removal of tariffs of 30% on UK exports of cars to Malaysia.[19] UK businesses like Sheffield-based chilli paste manufacturer Mak Tok could benefit as it seeks greater access to the Malaysian market.

More access to high-quality imported goods

As a member of a bloc where most goods imports are eligible for zero tariffs, consumers and businesses could benefit from better choice, quality, and affordability. This should include cheaper import prices for high-quality consumer goods like fruit juices from Chile and Peru, honey, and chocolate from Mexico, and vacuum cleaners from Malaysia.

It could also lead to cheaper import prices for inputs to manufacturing with tariffs eliminated on a wide range of inputs, including machinery and chemicals. Greater access to global supply chains is an important source of competitive advantage for businesses.

Strengthening economic security

The UK is helping to ensure its future economic security by joining one of the world’s most dynamic trading blocs while protecting our sovereignty. As CPTPP grows, the UK will help shape its development to fight unfair and coercive trading practices that threaten the future of international trade. British businesses will benefit from enhanced access to more markets while trading under fair rules that allow them to compete and thrive on the global stage.

Encouraging investment

In 2021, the level of investment from CPTPP countries in the UK was around £182 billion, accounting for at least 9% of the total UK inward investment.[20] Investment from CPTPP countries supported the creation of over 5,000 new jobs in 2021/2022.[21] Being a member of CPTPP encourages further investment by guaranteeing protections for investors, supporting jobs across the UK.

CPTPP’s rules will help protect UK investors from unfair, arbitrary, or discriminatory treatment and enable them to access a modern, transparent dispute settlement mechanism in case these rules are broken. Investors in the UK, including Japanese company Fujitsu, which employs more than 7,000 people in the UK, say CPTPP will help to strengthen the UK’s relationship with countries like Japan.

The Agreement

Goods market access

More than 99% of current UK goods exports to CPTPP members will be eligible for tariff-free trade once we have joined.[22]

Removing or reducing tariffs makes it easier and less expensive to trade physical products between members. This includes priority UK goods such as whisky and cars. Tariffs will be eliminated on UK exports of whisky to Malaysia (reduced from around 80% to 0% after staging).[23] UK car manufacturers will benefit from the staged removal of tariffs of 30% on UK exports of cars to Malaysia. Tariffs will also be eliminated sooner on some UK exports compared with under existing bilateral agreements, such as with exports of engines and medicines to Vietnam. CPTPP offers extensive tariff liberalisation with Brunei and Malaysia, with whom the UK does not currently have FTAs.

The UK has secured access to various CPTPP tariff rate quotas (TRQs) which will provide improved access to CPTPP markets for UK exporters, including dairy with Canada, Japan, and Mexico.

We have also reached agreement to ‘catch up’ on CPTPP members’ tariff staging, which means we are benefitting from the same reduced tariffs that all other CPTPP members do, despite them having joined CPTPP a number of years before the UK.

Key food, agriculture and automotive wins by country include:

Country	Access
Australia	All UK goods exports will be eligible for tariff-free access, after staging in some cases, the same as in the existing bilateral FTA.
Brunei	All UK goods exports will be eligible for tariff-free access, after staging in some cases.
Canada	Access to Canada’s CPTPP tariff schedule (beef exports will be subject to a TRQ under CPTPP), with benefits beyond the existing bilateral FTA with Canada including: Dairy, poultry & eggs: Additional opportunities to sell dairy products, including cheese, butter, cream, and milk powder, as well as poultry and eggs. The cheese quota provides an extra 16,500 tonnes of shared tariff-free access.
Chile	Access to the same tariff preferences that Chile grants to other CPTPP members, with benefits beyond the existing bilateral FTA with Chile, including: Dairy: Staged tariff liberalisation on dairy products such as cheese, butter, and cream.
Japan	Access to the same tariff preferences that Japan grants to other CPTPP members, with benefits beyond the existing bilateral FTA with Japan, including: Dairy and cereals: Additional opportunities to sell dairy products, including butter and milk powder, and cereal products.
Malaysia	Access to the same tariff preferences that Malaysia grants to other CPTPP members, with benefits for the following products: Whisky: Tariffs of around 80% will be eliminated on UK exports of whisky to Malaysia within 10 years. Chocolate and sugar confectionery: UK exporters of chocolate and sugar confectionery will benefit from 0% tariffs on exports of these products to Malaysia where they currently face tariffs of 10 to 15%. Cars: UK car manufacturers will benefit from the staged removal of tariffs of 30% and improved rules of origin make it easier for UK exports of cars to Malaysia to meet the tariff preferences.
Mexico	Access to the same tariff preferences that Mexico grants to other CPTPP members, with benefits beyond the existing bilateral FTA with Mexico, including: Dairy: Additional opportunities to sell dairy products, including cheese, butter, cream, and milk powder. The cheese quota provides an extra 6,500 tonnes of shared tariff-free access. Chocolate and sugar confectionery: UK exporters of chocolate and sugar confectionery will benefit from 0% tariffs on exports of these products to Mexico. Beef: Most Favoured Nation (MFN) tariffs of up to 25% will be eliminated on UK exports of beef to Mexico after staging. Pork: MFN tariffs of up to 20% will be eliminated on UK exports of pork to Mexico immediately upon the UK’s accession. Poultry: MFN tariffs of up to 75% will be eliminated on UK exports of poultry to Mexico after staging.
New Zealand	All UK goods exports will be eligible for tariff-free access, after staging in some cases, the same as in the existing bilateral FTA.
Peru	Access to the same tariff preferences that Peru grants to other CPTPP members, with benefits beyond the existing bilateral FTA with Peru, including: Beef and poultry: Staged tariff liberalisation on beef and poultry meat.
Singapore	All UK goods exports will be eligible for tariff-free access, the same as in the existing bilateral FTA.
Vietnam	Access to the same tariff preferences that Vietnam grants to CPTPP members, with benefits beyond the existing bilateral FTA with Vietnam, including: Chocolate and pork: Tariffs will be eliminated sooner on some UK exports with Vietnam.

There are clear benefits for UK consumers and producers from trade agreements. The agreement with CPTPP members has been developed in a way which recognises the benefits of imports, especially for products that cannot be produced all year round in the UK, in a balanced way. The agreement also secures new market access opportunities for exporters of our great UK produce and the UK has negotiated a number of protections for the most sensitive UK sectors.

Through the agreement UK businesses will be able to sell our high-quality food and drink produce to millions of consumers in the CPTPP member countries. For example, the UK has secured access to Canada and Mexico’s CPTPP tariff schedule for dairy products, including cheese, access to Mexico’s beef, pork and poultry markets, and access to Canada’s poultry market.

The protections the UK has negotiated mean that increased access to the UK market for sensitive agricultural produce will be staged over a significant period of time, giving producers in sensitive sectors time to adjust to any new trade flows. We have also agreed permanent annual limits on the volume of the most sensitive agricultural goods that can be exported to the UK at a reduced, or zero, tariff from major producing countries.

That includes permanent limits on the amount of beef, pork, chicken, sugar, and milled rice that can be imported tariff-free from major producers of these goods in CPTPP.

For those goods not covered by product-specific quantitative restrictions, a general transitional safeguard mechanism will provide a temporary safety net for industry if they face serious injury, or threat of serious injury, from increased imports as a result of the agreement.

In line with our agreement on signing the Australia and New Zealand deals, we have not provided those members with any further market access on sensitive agricultural products such as beef and sheep meat as part of CPTPP.

Given some countries receive different tariff treatments, we have confirmed with the Parties that the UK will have full recourse to mechanisms under the agreement to raise any concerns we may have that our domestic industry is being adversely affected by these differences and there is unintended diversion of trade.

The table below sets out how the UK has agreed proportionate market access for sensitive agricultural goods and from CPTPP Parties.

Good	Access
Beef	Brunei, Canada, Chile, Malaysia, Mexico, and Peru: Parties will share a single duty-free TRQ whose volume will increase incrementally over 10 years, capped at a permanent quota of 13,000 tonnes from year 10. Singapore: Duties will remain at the base rate through year 2 and will be eliminated from year 3, consistent with the bilateral FTA. Japan and Vietnam: Duties will be eliminated at entry into force, consistent with the bilateral FTAs. Australia and New Zealand: Beef will remain subject to the staging agreed under these members’ bilateral FTAs with the UK.
Pork	Brunei, Canada, Chile, Malaysia, Mexico, and Peru: Parties will share a single duty-free TRQ whose volume will increase incrementally over 10 years, capped at a permanent quota of 55,000 tonnes from year 10. Singapore and Vietnam: Parties will share the same TRQ as above, before duties are eliminated from years 3 and 5 respectively, consistent with the bilateral FTAs. Japan and New Zealand: Duties will be eliminated at entry into force, consistent with the bilateral FTAs. Australia: Pork will remain subject to Most Favoured Nation (MFN) tariff rates, as agreed under our bilateral FTA.
Chicken	Brunei, Canada, Chile, Malaysia, Mexico, and Peru: Parties will share a single duty-free TRQ whose volume will increase incrementally over 10 years, capped at a permanent quota of 10,000 tonnes from year 10. Singapore and Vietnam: Parties will share the same TRQ as above, before duties are eliminated from years 3 and 5 respectively, consistent with the bilateral FTAs. Japan and New Zealand: Duties will be eliminated at entry into force, consistent with the bilateral FTAs. Australia: Chicken will remain subject to MFN rates, as agreed under our bilateral FTA.
Sheepmeat	Australia and New Zealand: Sheepmeat will remain subject to the staging agreed under these members’ bilateral FTAs with the UK. All other CPTPP Parties: Duties will be eliminated at entry into force.
Long grain milled rice	Brunei, Chile, Malaysia, and Peru: Parties will share a single duty-free TRQ whose volume will increase incrementally over 10 years, capped at a permanent quota of 10,000 tonnes from year 10. Vietnam: Vietnam will receive access to a separate duty-free TRQ whose volume will increase incrementally over 8 years, capped at a permanent quota of 17,500 tonnes from year 8. Singapore: Duties will remain at the base rate through year 2 and will be eliminated from year 3, consistent with the bilateral FTA. Canada and New Zealand: Duties will be eliminated at entry into force, consistent with the bilateral FTAs. Australia, Japan, and Mexico: Long grain milled rice will remain subject to MFN rates.
Sugar	Brunei, Chile, Malaysia, Peru, and Vietnam: Parties will share a single duty-free TRQ whose volume will increase incrementally over 10 years, capped at a permanent quota of 25,000 tonnes from year 10. Canada and Singapore: Parties will share the same TRQ as above, before duties are eliminated from years 2 and 3 respectively, consistent with the bilateral FTAs. Mexico: Sugar will remain subject to MFN rates. Australia and New Zealand: Duties will remain at the base rate through years 14 and 7 respectively and will be eliminated from years 15 and 8, respectively. Japan: Duties will be eliminated at entry into force, consistent with the bilateral FTA.
Eggs	Australia: Eggs will remain subject to MFN rates. All other CPTPP Parties: Duties will be eliminated linearly from base rates over 10 years. Eggs will be duty-free effective from year 10.

The outcomes reached on other products that stakeholders have expressed an interest in are as follows:

• for palm oil, duties will be eliminated at entry into force for all CPTPP Parties (current tariffs range between 0% and a maximum of 12%)
• for bananas, where duties will be reduced to 62.00 GBP/1000kg at entry into force and remain at that rate in each subsequent year for all CPTPP Parties. In addition, Mexico and Peru will each receive additional access to separate TRQs of 8,000 tonnes each at entry into force, facing an in-quota rate of 40.00 GBP/1000kg

In respect of palm oil, we will continue to work domestically and with partners internationally to pursue our ambitions for nature, climate, sustainable development, including in multilateral fora such as the WTO, COP28 and through the Forest, Agriculture and Commodity Trade Dialogue.

In relation to bananas, the UK has sought to take into consideration the impacts of preference erosion on developing countries by maintaining a permanent tariff level.

Rules of origin

Joining CPTPP offers UK businesses the opportunity to diversify supply chains.

• UK businesses can count inputs from all CPTPP members in the production of their goods toward meeting the rules of origin, which could make it easier for UK exports to qualify for the preferential tariffs agreed in this FTA. For example, an electric car produced in the UK using a battery from Japan could then be exported to Mexico tariff-free.

• To help UK exporters access preferential tariffs, CPTPP provides a single set of rules of origin and product specific rules that define whether a good is ‘originating’.

• The UK already has FTAs with some CPTPP members. Each deal can provide different benefits to UK businesses, with tariff cuts meaning cheaper imports and more exports. Businesses will be able to export their products to CPTPP members using whichever preferential regime they prefer.

• This could help support UK efforts to diversify critical supply chains and increase our economic resilience by deepening our trading links across the Asia-Pacific region.

• Better access to Malaysia: there will be a side letter with Malaysia allowing more liberal rules of origin on automotive exports than the usual CPTPP rules. This will make it easier for UK manufacturers to export finished vehicles to Malaysia at lower tariffs, providing them with new growth opportunities.

Customs and trade facilitation

CPTPP will help facilitate bilateral trade by ensuring that members’ customs procedures are efficient, consistent, transparent, and predictable whilst also allowing each Party to maintain effective customs control.

• CPTPP includes a chapter on Customs Administration and Trade Facilitation which builds on the UK’s commitments under the WTO Trade Facilitation Agreement.

• All Parties commit to release goods within clear timeframes to provide greater certainty for traders and reduce costs where possible. This means that if all requirements for release are met, goods will be released within 48 hours of arrival where possible.

• Advance rulings on customs valuation, tariff classification and origin must be issued as soon as possible and within 150 days, so long as all necessary information has been provided. Rulings shall be valid for at least 3 years provided that the laws, facts, and circumstances relevant to the ruling remain unchanged.

• Information about customs procedures will be available for traders to access online, and review mechanisms will be made available to traders in respect of customs authority decisions. These commitments will increase confidence in the way the UK and CPTPP members trade together, ensuring transparency and predictability for all traders at, and away from, the border.

• The provisions on automation commit Parties to making electronic systems available to customs users and allow for the electronic submission of customs declarations. This should ensure that data and documentation requirements are as simple as possible for traders.

Trade in services

CPTPP will provide certainty and transparency for UK service suppliers in key UK industries and sectors such as professional and business services.

• The Cross-Border Trade in Services (CBTS) chapter in CPTPP contains modern rules governing trade in services. These prevent barriers to market access and ensure UK service suppliers will be treated no less favourably in key sectors than local service suppliers in CPTPP members.
• In 2022, service industries accounted for 79% (£1.88 trillion)[24] of total UK economic output and 82% of employment in the UK.[25] CPTPP will provide certainty and transparency for UK service suppliers in key UK industries and sectors such as professional and business services. Manufacturers also benefit from these service provisions – services support global supply chains by helping to facilitate complex and diverse operations.
• UK businesses will be able to provide services from the UK in key sectors without having to establish a local presence (such as an office) in a CPTPP member. The chapter also ensures that service providers have greater certainty around the procedures for obtaining or amending an authorisation, such as a license, to allow them to supply services in each other’s markets.
• The CBTS chapter also includes an annex on Professional Services that supports the recognition of professional qualifications between the UK and CPTPP members. This includes encouraging dialogues between regulators and the establishment of a Professional Services Working Group to monitor and drive progress. For legal services, the Parties have committed to encourage relevant bodies to consider ways to facilitate the practice of foreign law (including UK and international law).
• The CBTS chapter includes an Express Delivery Services Annex that encourages open markets for UK express delivery suppliers and ensures regulators are independent and impartial.
• As the second largest exporter of services in the world, these modern rules on trade in services will facilitate an increase in UK service export opportunities across the Asia-Pacific region. This will complement our strong and growing network of bilateral agreements, like those with Australia and New Zealand.
• This has been achieved without compromising on UK priorities. For example, we have always been clear that the NHS, its services, and the cost of medicines are not on the table in our free trade negotiations. Protecting the NHS is a fundamental principle of our trade policy, and this has not changed.

Financial services

The UK will benefit from specific commitments on portfolio management services that go beyond cross-border commitments in the General Agreement on Trade in Services (GATS) Understanding on Commitments on Financial Services.

• In 2022, financial and insurance activities accounted for 8% (£193 billion) of total UK economic output.[26]
• CPTPP includes a standalone financial services chapter. Various commitments in the chapter go beyond the GATS and create the conditions, across regulatory regimes and Party disciplines, for financial services firms to have confidence when entering and operating in CPTPP Parties’ markets.
• The chapter ensures that firms can provide new products and innovative services to CPTPP markets on a level playing field with domestic firms. It commits Parties to promoting regulatory transparency in financial services.
• CPTPP also allows portfolio managers, in which the UK has historic strengths, to manage funds across the world from the UK.

Electronic commerce (e-commerce)

The comprehensiveness and depth of CPTPP’s e-commerce chapter provides an excellent platform for the UK to help shape the emerging digital trading rulebook with influential partners and support UK businesses of all sizes.

• CPTPP’s commitments for e-commerce go beyond those contained within the UK’s bilateral FTAs with a number of CPTPP members, such as Vietnam, Chile, Mexico, and Canada. Additionally, CPTPP also provides for preferential e-commerce commitments with members that the UK does not have a bilateral FTA with, such as Malaysia and Brunei.
• In acceding to CPTPP, the UK will gain from disciplines that help to confront and prevent digital trade barriers, safeguarding gains across all sectors of the economy. Such measures include:
  • preventing the imposition of customs duties on electronic transmissions and the content within them
  • commitments to boost cooperation with members on vital digital trade issues like cybersecurity
  • guarantees on paperless trading
• Data flows underpin modern trade. UK businesses stand to benefit from increased certainty when operating in these markets, allowing them to plan their business growth, safe in the knowledge that they can gather, process, and move data between the UK and other CPTPP jurisdictions without being subject to needless red tape. These commitments include facilitating the free flow of data between the UK and CPTPP Parties, preventing data localisation requirements in CPTPP Parties, and safeguarding personal information.
• The commitments on data will not change or weaken the UK’s high-standard domestic legislation on personal data protection. Additionally, onward transfers to third parties will continue to be governed by the UK’s Data Protection Act 2018.
• The commitments will help generate trust in digital trade, such as preventing barriers to the use of electronic signatures, facilitating the interoperability of electronic authentication services between CPTPP Parties, and minimising the receipt of unsolicited commercial electronic messages (otherwise known as spam).

Temporary entry for business persons

CPTPP will provide legal certainty for UK service suppliers, removing barriers to market access and promoting liberalisation.

• Accession to CPTPP facilitates travel for UK business persons to CPTPP members, providing greater legal certainty on temporary entry routes for British Citizens. This will provide important clarity for individuals and businesses across multiple sectors, paving the way for long-term economic growth and investment.
• In 2020 8% (£3 billion) of services trade between the UK and selected CPTPP countries was delivered through the temporary movement of professionals for business purposes. Commitments on Temporary Entry also act as a vital enabler of the wider trade in services, goods, and investment.
• Through CPTPP, UK service suppliers will have greater certainty when travelling for business. This includes a range of business activity, including:
  • fly-in, fly-out activities (like attending a conference or meeting)
  • secondments to a branch or subsidiary
  • supporting an investment
  • supplying a service as part of a contract
  • self-employed service supply
• The UK’s commitments in this deal are compatible with, and deliverable through, the UK’s points-based immigration system.
• Through CPTPP, the UK has secured a new trading relationship with the most dynamic and fast-growing economic region in the world. Specifically, the UK has set a new high benchmark on business mobility commitments with Mexico, Chile, and Malaysia while building on our existing bilateral trading framework with members like Canada, Singapore, New Zealand, and Peru.
• The UK’s offer ensures that UK businesses are able to access talent and expertise from highly skilled business persons across the Trans-Pacific region. The UK’s commitments also set a high standard for other members seeking to join CPTPP in the future.
• For short term travel such as attending meetings, UK businesses now have greater certainty when travelling to members like Canada and Mexico, supporting around £500m of Mode 4 services exports in 2020.
• UK businesses also have greater certainty when travelling to Peru and Vietnam for short term business. Professionals will be able to stay for up to 6 months. This is double the amount of time in comparison to the UK’s previous bilateral agreements with these members.
• When transferring between branches of the same company, UK professionals will now be able to bring their family members with them. For example, UK service suppliers will be able to travel to Canada with their partners, including the ability for them to work.
• In addition, the UK will, for the first time, bind in greater certainty for both contracted and self-employed service suppliers travelling to Malaysia for business purposes. British citizens will be able to travel with more confidence to Malaysia across 19 economic sectors for stays of up to 12 months. This will build on the existing £65 million in Mode 4 services exports to Malaysia in 2020,[27] including sectors such as engineering and architecture, worth £30 million in the 4 quarters to the end of Q3 2022.[28]
• Finally, as a result of the UK’s accession, British Citizens seeking to support an investment will have guaranteed access to most CPTPP members, including Mexico, Singapore, Vietnam, and Chile. This will help to support the £66 billion the UK has already invested in these members as of 2021.[29] This is preferential access from Canada and only available to select international trading partners.

Investment

CPTPP’s investment chapter includes liberalisation provisions that will help further deepen those investment relationships by limiting barriers to overseas investment and ultimately making it easier for UK investors to establish and operate in CPTPP members.

• In 2021, the stock of outward Foreign Direct Investment (FDI) from the UK in CPTPP was £117.3 billion and the stock of inward FDI from CPTPP in the UK was £181.8 billion.[30]
• UK investors are also provided with robust guarantees on the treatment they will receive when accessing and operating in CPTPP markets with their investments. These include protections from unfair, arbitrary, or discriminatory treatment.
• A modern and transparent Investor-State Dispute Settlement (ISDS) mechanism will ensure that UK investors can access an independent form of legal redress should they not receive such treatment.
• The Government is clear that where we negotiate investment agreements and ISDS provisions, we will maintain our right to regulate in the public interest, including in areas such as the environment and labour standards.
• In light of the investment relationship the UK has with Australia and New Zealand, we have agreed to disapply the ISDS provisions in CPTPP between our countries.

Intellectual property (IP)

CPTPP membership will provide the UK with a new and powerful means of engaging these members, with a combined population of over 500 million, on trade-related aspects of intellectual property, in order to promote the UK’s interests in shaping international arrangements for IP protection.[31]

• The UK will be a constructive member of CPTPP, we will champion our values and priorities, including through the committees and councils set up by the agreement.
• The UK’s IP regime achieves an effective balance between rewarding creators and innovation and reflecting wider public interests, such as ensuring access and use of IP on reasonable terms. Joining CPTPP has not impacted this balance and will complement and reinforce new and enhanced bilateral trade agreements we have already signed and are currently negotiating with CPTPP members.
• The UK will not make any domestic changes regarding grace periods until the necessary amendments to the relevant international conventions have been made. The UK has therefore ensured our accession to CPTPP is consistent with our existing international obligations, such as the European Patent Convention (EPC). The UK will promote international harmonisation on the grace period and will report annually to other CPTPP Members regarding progress on this matter
• The UK meets the standards required for CPTPP accession including those related to pharmaceutical patents and generic medicines.

Sanitary and phytosanitary (SPS) measures

CPTPP will enable businesses to benefit from greater transparency and information sharing on the Parties’ SPS conditions and measures and joining will not compromise our high animal and plant health, food safety or animal welfare standards.

• Joining CPTPP will not compromise our high animal and plant health, food safety or animal welfare standards. All food and drink products imported into the UK will continue to have to comply with our import requirements. Nothing in CPTPP restricts the UK’s sovereign right to set our own animal welfare and antimicrobial resistance policies.
• The CPTPP SPS Chapter builds on each Party’s WTO obligations and sets out how they will facilitate trade while protecting human, animal and plant life and health.
• The Chapter will enable businesses to benefit from greater transparency and information sharing on the Parties’ SPS conditions and measures. It establishes dialogue structures to discuss technical issues and resolve barriers to trade and encourages openness in the development of new SPS measures in line with UK future priorities for WTO reform. It requires Parties to conduct import checks that are risk based, transparent, and carried out without undue delay, and to minimise red tape by encouraging the simplification of export health certificates.
• The Chapter’s equivalence mechanism will make it easier for producers to secure approvals for their exports. However, it will remain for the UK to judge whether individual CPTPP Parties’ standards are equivalent to those in the UK. Provisions on regionalisation define the process for managing regional pest and disease outbreaks while maintaining trade flows.
• The Chapter seeks to minimise unjustified barriers to trade by ensuring that Parties’ measures are either aligned with international standards or are based on documented and objective scientific evidence.

Technical barriers to trade (TBT)

CPTPP’s Technical Barriers to Trade Chapter facilitates trade by addressing non-tariff barriers caused by regulations, standards, and conformity assessment procedures.

• The chapter:
  • commits member states to ensure that regulations are non-discriminatory and least trade-restrictive
  • promotes the use of international standards
  • saves time and money for UK manufacturers, who can get their products assessed in the UK prior to export to a CPTPP member. The chapter does not require regulatory harmonisation, and preserves the UK’s right to regulate under the TBT Agreement
• The TBT Chapter requires CPTPP members to treat conformity assessment bodies[32] (CABs) located in other members no less favourably than their own domestic CABs (also known as national treatment of conformity assessment bodies). This allows UK CABs to apply for approval and accreditation across CPTPP members.
• Approximately £10 billion in UK exports to CPTPP members were covered by conformity assessment procedures in 2021[33]. If a UK CAB is accredited as a CPTPP member, then this has the potential to reduce costs for UK manufacturers exporting to CPTPP markets. This does not affect the regulatory requirements for products sold in the UK.
• The Chapter also enables members to request technical discussions to resolve any issues arising under the chapter and its annexes as efficiently as possible. These can provide routes to address issues faced by UK businesses of all sizes (including SMEs) when exporting to CPTPP markets.
• The Chapter includes 7 sector-specific annexes: wine & distilled spirits, information and communications technology, pharmaceuticals, cosmetics, medical devices, proprietary formulas for pre-packaged foods and organic products. These annexes can help address common market access issues arising in these sectors.

Government procurement

CPTPP will ensure that UK businesses receive fair and non-discriminatory treatment when competing for government contracts of CPTPP members.

• CPTPP includes a chapter on government procurement that largely replicates the obligations of the WTO Agreement on Government Procurement (GPA), of which the UK is a member. It provides for the transparency and accessibility of government procurement information, ensuring integrity in procurement practices and facilitating participation by SMEs.
• The UK’s market access obligations for government procurement cover the procurement of goods, services and construction activities by central and sub-central government entities and public utilities above specific thresholds. The UK’s market access in CPTPP mostly replicates the UK’s coverage in the GPA, and generally does not exceed the access provided for in our other international agreements.
• We have ensured appropriate protections remain in place for key public services. The procurement of healthcare services by the NHS is not within scope of the UK’s market access coverage.
• The UK broadly takes a reciprocal approach to market access, providing more extensive coverage for those CPTPP members that match the UK’s ambition, while limiting coverage for members that do not.
• The UK already has international agreements that include government procurement obligations with the majority of CPTPP members, but the UK will gain additional access in a few areas; for example, Canada and Japan expand their coverage of the procurement of services in CPTPP. As a result, a UK hospitality and catering firm will be guaranteed under the agreement to receive fair and non-discriminatory treatment when competing for Canadian central government and provincial government contracts. Businesses in this industry currently do not have this guaranteed access to Canadian procurement markets in any other trade agreement.
• The UK currently does not have any international agreements that include government procurement obligations with Malaysia and Brunei, and neither of these CPTPP members are members of the GPA. This means that the UK will, for the first time under an international agreement, have access to Malaysia’s government procurement market, giving greater opportunities for British goods suppliers and service providers in sectors such as infrastructure and professional business services. British goods suppliers and services providers will enjoy similar access to Brunei’s procurement market once they ratify the Agreement.
• The UK will ensure that our public procurement regulations are consistent with the CPTPP government procurement chapter. The Procurement Bill currently before Parliament is consistent with the CPTPP government procurement chapter provisions. Legislation will be necessary to extend UK market access obligations to CPTPP members and to ensure full implementation of the chapter at the point of UK accession to the agreement.

Small and medium-sized enterprises (SMEs)

CPTPP includes a dedicated SME chapter in which all Parties acknowledge the importance of supporting SMEs and enabling them to take advantage of opportunities created by the agreement.

• The provisions are aimed at improving the accessibility of the agreement for SMEs, which could help reduce the costs that these businesses face and thereby positively impact their propensity to export. For example, provisions within the Chapter require that Parties share the agreement online, along with summaries and highlight provisions useful for SMEs.
• The Chapter also commits all Parties to cooperating in a dedicated Committee on SMEs. Through the Committee, the Parties commit, amongst other things, to:
  • sharing information on their experiences supporting SME exporters, for example through training programmes
  • exploring further capacity building for their SMEs

Environment

CPTPP includes a comprehensive environment chapter, which commits Parties to strive to encourage high levels of environmental protection, to continue to improve their respective levels of environmental protection, and to not derogate from their environmental laws in order to encourage trade and investment between Parties.

• It also reaffirms commitments to implement Multilateral Environmental Agreements to which members are party, recognises Parties’ rights to set their own levels of domestic environmental protection and environmental policies, and ensures Parties have recourse to dispute settlement if environmental chapter commitments are not met. The agreement establishes a dedicated Environment Committee to oversee the implementation of the Chapter.
• Trade and investment play a critical role in achieving clean growth and environmental aims by promoting clean imports and exports and encouraging foreign direct investment into the low carbon economy (across a range of sectors from automotive to energy). This is in addition to facilitating international cooperation on global environmental issues, to accelerate the global transition to a low carbon economy and to reaching Net Zero.
• The chapter facilitates cooperation in the transition to low emissions and resilient economies, such as promoting cooperation in energy efficiency, sustainable transport, and the development of low emission technologies. The FTA recognises the importance of promoting trade and investment in environmental goods and services and endeavours to address and remove barriers to trade in those areas. Under the agreement, there will be no tariffs on UK exports of new electric vehicles and wind turbine towers.
• Under the CPTPP agreement, the UK is able to cooperate with other members on issues such as: addressing deforestation and forest degradation; promoting sustainable fisheries management; promoting conservation and biodiversity; protecting the ozone layer and preventing marine pollution from ships.
• As part of formally concluding CPTPP negotiations, the UK will issue a statement alongside other CPTPP Parties emphasising the importance of tackling issues related to climate, environment, and trade.
• As part of formally concluding CPTPP negotiations, the UK and Malaysia will publish a joint statement setting out our shared commitment to work together to promote sustainable production and protect forests.
• All CPTPP members are signatories to the Paris Agreement, including its temperature goals and have recognised members’ right to regulate, which includes in pursuit of achieving Net Zero.

Labour standards

CPTPP is a high standards agreement. It contains a comprehensive labour chapter with binding provisions that help to protect labour rights, improve working conditions, and promote enhanced cooperation and consultation on a range of labour issues.

• There is nothing in CPTPP which would cause, or encourage, the UK to weaken its own labour laws.
• The Labour Chapter reaffirms CPTPP Parties’ obligations as members of the International Labour Organization and requires Parties have laws governing acceptable conditions of work, including minimum wages, hours of work, and occupational health and safety.
• The Labour Chapter also prohibits Parties from weakening protections afforded to workers under their labour laws, or from failing to enforce them, in order to gain a trade advantage. This means UK workers can be confident that their jobs will not be threatened or undercut by unfair labour practices and businesses can be confident of a fair-trading environment.
• The Chapter promotes enhanced co-operation and consultation on a range of labour issues. The Chapter also provides for the application of the agreement’s dispute settlement procedure, as well as a range of mechanisms to facilitate implementation of the chapter, including public submissions.

Trade remedies

CPTPP ensures that both the UK and other CPTPP members can protect their domestic industries from unfair trading practices or unforeseen surges in imports.

• The Trade Remedies Chapter affirms CPTPP members’ existing rights and obligations under the WTO Agreements regarding anti-dumping, countervailing and global safeguard measures.
• The Chapter also provides for the application of transitional safeguard measures if, as a result of tariff liberalisation under the terms of the agreement, imports increase in such quantities that they cause or threaten to cause serious injury to domestic industry.

Competition policy

CPTPP promotes open and fair competition, which benefits UK businesses and consumers.

• It contains provisions requiring that all Parties have comprehensive competition regimes, as part of a transparent regulatory environment. It maintains procedural rights for people and businesses under investigation by independent competition authorities, such as ensuring they have the right to be legally represented.

State-owned enterprises (SOEs) and designated monopolies

CPTPP promotes open and fair competition between private enterprises and businesses owned by CPTPP signatories, benefitting UK businesses and consumers by aiming to prevent SOEs from distorting trade because of their relationship with government.

• It reassures UK businesses of CPTPP signatories’ long-term commitment to guarantee that SOEs operate in accordance with commercial practices. This includes any adverse effects from distortive practices in the territories of third Parties.

Anti-corruption

CPTPP supports the UK’s objectives by addressing the trade distorting effects of corruption on global trade and fair competition.

• It includes provisions such as the criminalisation of bribery and foreign bribery, affirmation of international commitments, as well as provisions regarding the integrity of public officials and private sector and civil society participation.
• The anti-corruption provisions within the agreement acknowledge each member’s resolve to combat bribery and corruption in international trade and investment and reinforce international obligations, such as those within the United Nations Convention Against Corruption (UNCAC).

Regulatory coherence

CPTPP will help create a more predictable and business-friendly regulatory environment, which may help UK traders to feel more confident doing business with CPTPP members.

• The Regulatory Coherence chapter ensures all Parties have and maintain an evidence-based, coordinated, and transparent process when developing regulation.
• The chapter establishes a Regulatory Coherence Committee which will, amongst other things, monitor the implementation of the agreement and facilitate regulatory cooperation. Enhanced regulatory cooperation may allow for a more aligned and stable regulatory landscape between the Parties, helping to remove non-tariff trade barriers for businesses.

Wider considerations

Engagement with the Devolved Administrations

CPTPP will support jobs and create opportunities for UK businesses in every part of the UK and English regions.

• Trade negotiations fall under the international relations reservation and are a matter for the UK Government, but the Devolved Administrations have important interests in the area.
• Since the start of negotiations, the UK Government has kept the Devolved Administrations involved at every stage of negotiations, and they have provided their views on CPTPP regularly, including on the internal negotiating mandate in devolved policy areas and the UK’s strategic approach (which include the Consultation Response) before its publication.
• Ministers from Devolved Administrations have expressed their views with the Minister for Trade Policy throughout the process, including at formal Interministerial Group for Trade meetings. Officials from Devolved Administrations have attended multiple meetings with the Chief Negotiator to express their views on CPTPP accession. Working-level meetings have taken place every 4 to 6 weeks throughout negotiations.
• The CPTPP negotiation team has provided regular updates before, during and after negotiating rounds, to ensure that officials from Devolved Administrations have been kept up to date on the latest developments.

Crown Dependencies and Overseas Territories

When negotiating FTAs, the UK negotiates on behalf of the whole UK and the Crown Dependencies (CDs) and Overseas Territories (OTs).

• The UK has broadly secured our precedented outcomes for the CDs and OTs in this negotiation. The CDs are covered for goods trade, which support the operation of UK-CD customs arrangements and there is scope for full participation in the agreement in future. We have done this by securing an extension mechanism, which provides a vehicle to extending the whole agreement to any CD or OT in the future.

The future of CPTPP, with the UK as a member

Joining CPTPP will link the UK to one of the most dynamic trading areas in the world, a key aim of the Integrated Review. The more CPTPP expands, the greater the benefits to the UK. That is why we want a seat at the table now, as the first new member. Then we can help shape its future development as it grows.

• The UK is the first economy to accede to CPTPP. We are also the first member outside of the Pacific region, transforming the agreement from a regional to a truly global one. Our membership will enable us to shape the future of the agreement, increasing our influence, and that of the wider bloc, in setting the rules of the global economy so they benefit open and fair economies in a network committed to free trade.
• CPTPP has strong rules against the unfair trade practices used by some countries. These strong rules benefit British business. The UK joining CPTPP will help strengthen the international consensus against such practices.  ​
• CPTPP affirms members’ rights to regulate in their national self-interest, rather than forcing harmonisation on its members. This fits perfectly with Britain’s strong rule of law and our need to set our own standards and regulations. ​
• As part of the CPTPP Commission, the UK will have equal decision-making powers with the existing members once we have joined. As stated in Article 27.3: Decision-Making, all decisions of the Commission and its subsidiary bodies are taken by consensus. This means that every member has to agree, unanimously, for any decision to be made. The UK therefore will have the power, as any member does, to agree or veto a decision.
• Our accession will create an even stronger incentive for others to join this high-standards agreement, amplifying its impact. At the time of the UK’s accession, 5 economies have formally applied to join CPTPP: China, Taiwan, Ecuador, Costa Rica, and Uruguay. Other economies have publicly expressed interest.
• As a CPTPP Commission member, the UK will be part of any decision taken about these applications. Like any Commission decision, this will happen by consensus of all the Parties.

• If the Commission decides to begin the accession process for any applicant, that economy will have to go through the same rigorous accession process as the UK has just been through. The standards they have to meet are set out in the Accession Process for CPTPP:

  • “Aspirant economies must:

    • “demonstrate the means by which they will comply with all of the existing rules contained in the CPTPP; and
    • “undertake to deliver the highest standard of market access offers on goods, services, investment, financial services, government procurement, State‐owned enterprises, and temporary entry for business persons. These must deliver commercially meaningful market access for each Party in a well‐balanced outcome that strengthens the mutually‐. beneficial linkages among the aspirant economy and the Parties, while boosting trade, investment, and economic growth, and promoting efficiency, competition, and development.”
• The UK also agrees with statements that have been made by the existing Parties that any applicant will also have to demonstrate a pattern of complying with their existing trade commitments.

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[1] IMF World Economic Outlook Database, October 2022 edition.

[2] ONS, UK total trade: all countries seasonally adjusted data, released January 2023.

[3] DBT Global Trade Outlook, 2023.

[4] DBT Global Trade Outlook, 2023.

[5] IMF World Economic Outlook Database, October 2022 edition.

[6] IMF World Economic Outlook Database, October 2022 edition.

[7] ONS, UK total trade: all countries seasonally adjusted data, released January 2023.

[8] DBT Global Trade Outlook, 2023.

[9] UNCTAD: Services (BPM6): Exports by service-category and by trade-partner, annual.

[10] ONS UK total trade: all countries, non-seasonally adjusted, January 2023; in the 4 quarters to the end of Q3 2022.

[11] ONS, UK trade in services: service type by partner country, non-seasonally adjusted, in the 4 quarters to the end of Q3 2022, released 26th January 2023.

[12] ONS, UK Trade in services by modes of supply: 2020, released 25th February 2022.

[13] CPTPP Scoping Assessment, June 2021. Long run estimates are compared to 2019 levels.

[14] CPTPP Scoping Assessment, June 2021. Long run estimates are compared to 2019 levels.

[15] HMRC overseas trade statistics, January 2023.

[16] ONS UK total trade: all countries, seasonally adjusted, January 2023; in the 4 quarters to the end of Q3 2022.

[17] IMF World Economic Outlook, October 2022.

[18] ONS UK total trade: all countries, non-seasonally adjusted, January 2023; in the 4 quarters to the end of Q3 2022.

[19] DBT analysis of tariffs of CPTPP countries based on sources such as data exchanges, national customs authorities, WTO TAO and MacMap.

[20] ONS Foreign direct investment (FDI) totals for inward and outward flows, positions and earnings, released 24th January 2023.

[21] ONS, levels of inward investment projects in the UK for the financial year 2021 to 2022..

[22] Methodology and data sources described in the CPTPP Scoping Assessment, published June 2021.

[23] DBT-calculated estimate of ad valorem equivalent (AVE) for Malaysia’s most-favoured nation (MFN) whisky tariff.

[24] ONS GDP output approach – low-level aggregates, released 10 February 2023.

[25] ONS EMP13: Employment by industry, released 14 February 2023.

[26] ONS GDP output approach – low-level aggregates, released 10 February 2023.

[27] ONS UK Trade in services by modes of supply: 2020.

[28] ONS UK trade in services: service type by partner country, non-seasonally adjusted, released 26th January 2023.

[29] ONS FDI totals for inward and outward flows, positions, and earnings, released 24th January 2023.

[30] ONS FDI totals for inward and outward flows, positions, and earnings, released 24th January 2023.

[31] IMF World Economic Outlook Database, October 2022 edition.

[32] Conformity assessment is any procedure used to determine that relevant requirements in technical regulations or standards are fulfilled. It includes activities such as testing, inspection and certification. The organisations that make these checks are called conformity assessment bodies.

[33] DBT calculations using ITC MacMap regulatory requirement data (accessed August 2022), 2021 partner country import data, and 2021 HMRC trade data.