The UK has formally signed the treaty to accede to CPTPP trade bloc in New Zealand over the weekend, kickstarting the UK’s membership of a modern and ambitious trade deal spanning 12 economies across Asia, the Pacific.

The Secretary of State is in Auckland to put pen to paper on this mega deal, alongside New Zealand Trade Minister Damien O’Connor, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalisation Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.

The signature is the formal confirmation of agreement for the UK to join the group, following substantial conclusion of negotiations earlier this year. The Government will now seek to ratify the agreement, which will include parliamentary scrutiny, whilst other CPTPP countries complete their own legislative processes.

The signing comes as a new government report reveals that over 16,000 people were employed across 281 CPTPP-owned businesses in Wales in 2019, with a combined turnover of £4.1 billion.

Membership of the trade group is expected to spark further investment in Wales by CPTPP countries, already worth £182 billion across the UK in 2021, by guaranteeing protections for investors.

Speaking ahead of the signing, Kemi Badenoch said:

“I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.

“We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”

The report also found that CPTPP companies punch above their weight economically. While they account for 0.3% of all businesses in the UK, they generate 6.1% of the UK’s total turnover – 20 times higher than the proportion of businesses they represent.

The UK will be the first European member and first new member since CPTPP was created, with membership impossible had we remained in the EU. With the UK as a member, CPTPP will have a combined GDP of £12 trillion and account for 15% of global GDP.

The Government will now take the steps needed to bring the agreement into force, expected to be next year.

There are numerous opportunities for Welsh businesses to benefit from being part of CPTPP, with Welsh businesses exporting over £1.3 billion worth of goods to CPTPP countries in 2022.

FinTech company Credas are based in Cardiff and say that the CPTPP modern digital provisions will make it cheaper and easier for firms in Wales to expand and sell their services to CPTPP markets.

Tim Barnett, CEO at Credas said:

“The agreement for the UK to join CPTPP has already become a real catalyst for us, generating exciting opportunities by removing the barriers technology firms like Credas currently face when exporting.”

Being part of CPTPP will mean that more than 99 per cent of current UK goods exports to CPTPP countries will be eligible for zero tariffs. Dairy farmers, for example, will benefit from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico. This builds on the £23.9 million worth of dairy products we exported to these countries in 2022.

The agreement is a gateway to the wider Indo-Pacific which is set to account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come, bringing new opportunities for British businesses and supporting jobs.

South Korea, Uruguay, Costa Rica and other economies have also expressed interest in joining the group, potentially expanding its GDP to over £14 trillion.

Ian Stuart, CEO at HSBC UK, said: 

“The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology.

“At HSBC UK, we are incredibly excited about the opportunities this agreement presents; as the world’s leading global trade bank we will support UK businesses to achieve their full potential and open up a world of opportunity.”

Ian Galbraith, Group Strategy Director at Mott MacDonald, said: “Mott MacDonald is strongly supportive of UK accession to CPTPP and proud to have been part of the technical board advising the British negotiating team.

“The Partnership’s ambitious services and procurement chapters pave the way for greater recognition of professional competence in engineering and architecture, and establish open, fair and transparent competition rules in government procurement, allowing world-leading firms like Mott MacDonald to win and service new contracts across the many countries covered by CPTPP.”

Marco Forgione, Director General of The Institute of Export & International Trade said:

“This is an incredibly exciting moment, not just for British businesses but for the wider British public too. Joining the CPTPP means that the UK has free trade access to rapidly expanding new markets and economies.

“For businesses, from small firms to large-scale organisations selling physical goods or services, the agreement represents a new gateway to 500 million customers which they can sell to with far fewer barriers.”