Page 48 - Horizon Han22

As an immediate, visual and clear benefit, with accession the UK could see 99.9% of UK exports being eligible for tariff-free trade with other CPTPP members.
Once the Australian and New Zealand trade agreements have passed Parliamentary scrutiny, the UK will have bi-lateral trade agreements with nine of the eleven CPTPP countries.
Which begs the questions...what added bonus is there to the CPTPP?
Well, in terms of goods claiming the preferential tariff rate, it will provide two separate rules of origin which a business could satisfy. With the additional choice comes additional flexibility for a business.
It's not just all about goods though. The services sector will also benefit from the CPTPP. The CPTPP will make travel easier for business people to move between CPTPP countries, it includes advanced provisions to facilitate digital trade and, modern rules on data. Also, it will reduce barriers to investment and open up financial services markets. Overall, the UK exported £28.8bn worth of services to CPTPP members in 2019 and this is only set to grow.
As the chart opposite shows, in many areas the CPTPP goes beyond the bi-lateral trade agreements which we currently have in place. Though bear in mind, this table was provided by Government prior to the Australian and New Zealand agreements.
Within the Government's "UK Accession to CPTPP: The UK's Strategic Approach" the below table is provided to illustrate which areas the CPTPP goes beyond any current agreements with each individual country.
1&4 - New FTAs with Australia and New Zealand are currently undertaking Parliamentary Scrutiny and are not included in this graph.
2&3 - Government has announced that they will/are negotiating new trade agreements with Mexico and Canada.
48. The CPTPP
Strategically, accession to the CPTPP will
The place for GROWTH...
put the UK at the heart of a dynamic
area as the world economy increasingly
Regardless of whether the UK joins the CPTPP, DIT projections shifts towards the Pacific region.
65% suggest the potential for UK exports to CPTPP countries to increase by 65% from 2019 to 2030 (£from 57 billion to £94 billion)
In 2019, CPTPP countries accounted for six
of the world's top 30 import markets.
By 2050, the current CPTPP countries are expected to
account for $13.3 trillion of the global imports. That
However, by 2050, seven of the eleven
equates to 13% share of global imports and a
CPTPP countries will appear in the top 30
$13.3tn monetary rise of $3.5trillion from 2019.
import markets. Malaysia being the
additional country but, there is also a
significant jump up the table by Vietnam. In
In 2020, the CPTPP countries collectively represented 13% of global 2019, Vietnam were placed 24th with a 1.1%
gross domestic product (GDP).
13%
share. By 2050, they are expected to rise to
tenth with a 2.1% share of global import
market.
DIT modelling suggests that there could be an increase in
UK GDP of £1.8 billion in the long run. This increase would
£1.8bn This growth will align with a growth in the
be added growth above and beyond future trends.
middle-class within the region. In-turn
there will be an increased demand for higher
It is predicted that by 2030, 65% of the world's 5.4 billion middle quality products and services (which is an
class consumers are expected to by in Asia.
area that the UK excels in).
65%
Horizon - Taking your international trade further.
Horizon issue 2.indd 48 14/12/2022 14:50:18