The logistics and transport industry reacts to the announcement that the UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a vast free trade area of 11 countries spanning the Indo-Pacific.
The historic agreement follows two years of intense negotiations by the Department for Business and Trade and puts the UK at the heart of a dynamic group of economies, as the first European member and first new member since CPTPP was created. We would not have been able to join as a member of the EU, demonstrating how the UK is seizing the opportunities of our new post-Brexit trade freedoms to drive jobs and growth across the country.
The bloc is home to more 500 million people and will be worth 15% of global GDP once the UK joins. It is estimated that joining will boost the UK economy by £1.8 billion in the long run, with wages also forecast to rise by £800 million compared to 2019 levels.
Rishi Sunak, Prime Minister, said:
"We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms. As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation.
"Joining the CPTPP trade bloc puts the UK at the centre of a dynamic and growing group of Pacific economies, as the first new nation and first European country to join. British businesses will now enjoy unparalleled access to markets from Europe to the south Pacific."
Kemi Badenoch, Business and Trade Secretary, said:
"This is an important moment for the UK. Our accession to CPTPP sends a powerful signal that the UK is open for business and using our post-Brexit freedoms to reach out to new markets around the world and grow our economy.
"Joining CPTPP will support jobs and create opportunities for companies of all sizes and in all parts of the UK. It is about giving British businesses improved access to the countries that will be gateway to the wider Indo-Pacific region which is projected to make up the majority of global growth in the future."
Speaking about the announcement of the new UK trade deal with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Kate Jennings, Director of Policy, Logistics UK, said:
“The UK’s accession to the CPTPP may only yield small benefits to the nation’s business in the short term, but the access to innovation and increased productivity which the deal will deliver longer term will be of benefit to the overall health of the UK economy. As a nation with longstanding and excellent trading links worldwide, UK PLC stands ready to benefit from the opportunities the new agreement will provide thanks to the country’s interconnected supply chain. The success of the agreement will stand on improved access to high growth markets including simplification of customs processes and future opportunities to digitise the movement of goods to speed connections between the UK and the 11 nations involved.”
Reacting to the news that the UK has joined The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Marco Forgione, Director General, The Institute of Export & International Trade (IOE&IT), said:
“We welcome the news of the UK’s imminent accession to CPTTP. This agreement not only reduces trade tariffs for goods, but also sets new rules in areas such as services, investment, intellectual property, digital trade and advanced manufacturing.
"This is all good news for UK businesses, giving them greater access to one of the fastest growing regions in the world, accounting for around 13% of global GDP. It will also enhance our ties with countries we already have trading partnerships with, building more resilient supply chains between nations."
Gerry Power FCILT, Head of Country UK at TMX Global said:
"Whilst no silver bullet for the economy, the news that the UK is joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) nevertheless brings with it significant opportunities for international business trade over the coming years.
The reduction of trade tariffs and greater access to the key economies within the CPTPP bloc provides the possibility to further develop and bolster resilient supply chains between the UK business community and the 11 other members of the agreement, as well as giving longer-term access to innovation and increased productivity.
Between now and the agreement going into force (set to be 2024), businesses might consider the impact of the CPTPP membership on their own international trade plans and use the time to implement any related strategic changes to their supply chain – whilst balancing the impact of wider global trade with any existing and planned environmental and climate commitments."