UK ratifies deal to join Indo-Pacific trade bloc, seals tax agreement with Peru

Six other countries also need to ratify the UK’s membership by October 2024 in order for the deal to enter into force by the end of the year, with Singapore, Japan and Chile the only members to have already done so.

The UK had expected the ratification process to take until July but announced the news during a meeting with members of the group in Arequipa, Peru, on 17 May.

An initial deal for the UK to join CPTPP was signed in July 2023, members of which include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Joining the pact will mean that 99% of current UK goods exported to CPTPP members will be eligible for tariff-free trade, with the partnership encompassing 500m consumers. In 2023, the UK exported £2.3bn (adjusted for current prices) of food and drink to CPTPP countries.

Meanwhile, the UK has also concluded negotiations on a Double Taxation Agreement (DTA) with Peru, a deal that will protect businesses from being taxed twice while trading.

Ahead of the two-day visit to Peru, UK Government minister for trade policy Greg Hands said: “The UK has been racing to get our ratification done because we know how much CPTPP will benefit British businesses, whether through access to new markets or cutting red tape on existing exports. ​

“I’m delighted we were able to bring this forward, ahead of our original July forecast, so we can get the countdown to Entry into Force going as soon as possible.”​

William Bain, head of trade policy at the British Chambers of Commerce, welcomed the news that the UK had ratified its membership CPTPP. 

“There are few multi-national trade agreements like this one,”​ Bain said.

“The UK’s addition to this bloc will open up new opportunities for both inward and outward investment."​

Elsewhere, The Glasgow Distillery founder Liam Hughes believes that the UK joining CPTPP will allow the firm to grow its exports in the region.

“Opening markets for trade within the CPTPP bloc is a positive move forward for The Glasgow Distillery,"​ Hughes added.

“The opportunity this agreement provides will be particularly beneficial for our Single Malt Scotch Whisky brand, Glasgow 1770, which will benefit directly from reduced tariffs in Malaysia, allowing us to explore this as a potential new market.”​

In other news, Kellanova has confirmed that its Kellogg’s cereal factory in Manchester will close towards the end of 2026​​, with 360 job losses expected.