Accession of the United Kingdom to CPTPP

Following its withdrawal from the European Union on 31 January 2020, the United Kingdom began negotiations on several free trade agreements to remove or reduce tariff and non-tariff barriers to trade, both to establish new agreements and to replace previous EU trade agreements. Withdrawal ended 47 years of membership during which all its trading agreements were negotiated by the European Commission on behalf of the bloc. The UK did not actually withdraw from the European Single Market and the European Union Customs Union (and its trade agreements) until 31 December 2020.

Following its failure to secure a United Kingdom–United States free trade agreement, Britain had been reportedly interested in joining several multilateral free trade agreements including USMCA.[11][12] In January 2018, the government of the United Kingdom stated it was exploring membership of the CPTPP to stimulate exports after Brexit and has held informal discussions with several of the members.[13]

In October 2018, Japanese Prime Minister Shinzo Abe said he would welcome the United Kingdom joining the partnership post-Brexit.[14] In a joint Telegraph article with Simon Birmingham, David Parker, and Chan Chun Sing, the trade ministers of Australia, New Zealand, and Singapore, UK Secretary of State for Trade, Liz Truss, expressed the United Kingdom's intent to join the CPTPP.[15] The UK Department for Trade's chief negotiator Crawford Falconer helped lead the New Zealand negotiations for the predecessor Trans-Pacific Partnership before leaving the Ministry of Foreign Affairs and Trade in 2012.[16]

In June 2020, the government of the United Kingdom issued a policy paper[17] reaffirming the UK's position on accession to the CPTPP. There were three reasons given:

• Securing increased trade and investment opportunities that will help the UK economy overcome the unprecedented challenge posed by coronavirus. Joining CPTPP would open up new opportunities for UK exporters in strategically important sectors and helping to support an industrial revival in the UK
• Helping the United Kingdom diversify trading links and supply chains, and in doing so increasing economic security at a time of heightened uncertainty and disruption in the world.
• Assisting the UK's future place in the world and advancing the UK's longer-term interests. CPTPP membership is an important part of our strategy to place the UK at the centre of a modern, progressive network of free trade agreements with dynamic economies. Doing so would turn the UK into a global hub for businesses and investors wanting to trade with the rest of the world.

Furthermore, the British government stated that in 2019, each region and constituent country of the United Kingdom exported at least £1 billion ($1.25 billion) worth of goods to CPTPP member countries.[18] The UK government also highlighted that British companies held close to £98 billion worth of investments in CPTPP countries in 2018[19] and that in 2019, the UK did more than £110 billion ($137 billion) worth of trade with countries in the CPTPP free trade area.[20] In December 2020 the UK's Secretary of State for Trade Liz Truss further expressed her desire for the UK to formally apply in early 2021.[21] In a speech, held on 20 January 2021, Truss announced the UK planned to submit an application for participation "shortly".[22] In October 2020 the United Kingdom and Japan already signed the UK–Japan Comprehensive Economic Partnership Agreement which was a roll over of the agreement between the EU and Japan.

The British government has not produced an impact assessment that explains or quantifies the benefits it expects for the UK economy from accession to CPTPP.[23] As such, it is a matter of dispute in UK as to whether accession is worth pursuing for economic reasons.[24] Farmer, environmental and consumer groups have all raised concerns that the UK government will need to agree to lowering standards on pesticides, pig welfare and food labelling.[25] These concerns have also been raised by the Scottish government.[26]

  CPTPP Signatories

  United Kingdom

  Crown Dependencies and Overseas Territories

On 1 February 2021, the United Kingdom formally applied to join CPTPP.[2] The UK is the first non-founding country to apply to join the CPTPP. If successful, Britain would become the second largest CPTPP economy, after Japan.[27] Japan had expressed support for the UK's potential entry into CPTPP in 2018,[28] and as 4th CPTPP Commission (2021) chair, Japan's minister in charge of negotiations on the trade pact, Yasutoshi Nishimura, expressed hope on Twitter that Britain will "demonstrate its strong determination to fully comply with high-standard obligations" of the free trade accord, and mentioned that "I believe that the UK’s accession request will have a great potential to expand the high-standard rules beyond the Asia-Pacific."[29]

In June 2021, the CPTPP states agreed to open accession talks. A working group was established to discuss tariffs and rules governing investment and trade. The United Kingdom was forecast to accede to the CPTPP at 2022 at the earliest.[30]

Prior to its withdrawal, the United Kingdom had agreed 36 free trade agreements with countries and trade blocs, the majority of which entered force on 1 January 2021.[31][32] 33 of these free trade agreements were continuity agreements. These used a mutatis mutandis concept to quickly replicate the existing EU agreements, only having to call out those minor areas of differentiation.[33][34] This meant that the UK had continuity free trade agreements with 6 CPTPP members, these were: Canada, Chile, Mexico, Peru, Singapore, and Vietnam.

The UK and Japan had also signed a Enhanced agreement in October 2020 which was mostly based on European Union–Japan Economic Partnership Agreement, but was branded as "marking an historic moment" as the "UK’s first major trade deal as an independent trading nation".[35][36] In addition, two further new agreements were negotiated with Australia, on 17 December 2021, and New Zealand, on 28 February 2022.[37][38] This meant that the UK had free trade agreements signed with all members of CPTPP, except for Brunei and Malaysia, by the end of February 2022.

On 18 February 2022, confirmation came from the Japanese government, as Chair of the United Kingdom's Accession Working Group on behalf of the CPTPP members, that the UK had moved into the second (and final) ‘market access’ phase of negotiations with the CPTPP.[39]

As of 31 March 2023, the United Kingdom is set to join the CPTPP, as the 11 members have reached an agreement to Britain's accession.[3][4][40] Each of the existing member nations will need to ratify the UK's addition to the partnership before it takes effect.[7]

The United Kingdom negotiated on behalf of the Crown Dependencies and the British Overseas Territories during free trade agreement discussions. On 31 March 2023, the UK government announced it had secured an extension mechanism, which could extend the whole agreement to any Crown Dependency or Overseas Territory.[41] On the same day, Guernsey and Jersey confirmed their intentions to participate in CPTPP.[42][43] In May 2023, a UK government spokesman confirmed that "the deal will cover goods trade between the Crown Dependencies and CPTPP countries, with a mechanism to include trade in services in future."[44]

On 17 April 2023 on the occasion of G7 Foreign Ministers' Meeting in Karuizawa, Foreign Secretary, James Cleverly attended a bilateral meeting with Japan's Minister for Foreign Affairs, Yoshimasa Hayashi. The two ministers affirmed to continue advancing the UK's accession process to the CPTPP, and they engaged in a candid discussion from a strategic perspective.[45]

The United Kingdom formally signed the CPTPP trade deal during the ministerial meeting of members in New Zealand on 16 July 2023.[46][6]

Each of the existing member nations must ratify the UK's accession to the CPTPP before it takes effect.[7]

Ratification process

Signatory	Date	Institution			AB	Deposited	Ref.
Australia		House of Representatives
		Senate
		Royal assent
Brunei		No parliamentary approval required
Canada		House of Commons
		Senate
		Royal assent
Chile		Chamber of Deputies
		Senate
Japan		House of Representatives
		House of Councillors
Malaysia		Cabinet of Malaysia
Mexico		Senate
		Presidential Assent
New Zealand		House of Representatives
		Royal assent
Peru		Congress
Singapore		No parliamentary approval required
Vietnam		National Assembly

Signatory	Signature	Institution			AB	Deposited	Ref.
United Kingdom	16 July 2023	Government					[47][6]

Economists and media outlets criticised the assertion by Prime Minister Rishi Sunak that CPTPP "demonstrates the real economic benefits of our post-Brexit freedoms", by citing the International Agreements Committee report wherein it states that the percentage increase in the United Kingdom's GDP provided by CPTPP membership is only 0.08%.[48][49][50] Economist Sam Lowe also pointed out that this figure is low due to the UK already having bilateral free trade agreements with all member states, with the exceptions of Brunei and Malaysia.[51][9]

In contrast, it is estimated that the costs of leaving the EU have reduced the UK's GDP by 5.5%, provoking criticism from prominent media outlets as to the extent of the benefits of CPTPP, particularly as an alternative to the EEA.[52][53] However, due to the high growth of the UK economy in comparison to Germany between 2016 and 2022, these estimates have been disputed.[54]

Criticism of the UK government occurred after it agreed to eliminate all import tariffs on palm oil from Malaysia, a product blamed for widespread deforestation, prompting outrage from green campaigners.[55][56] The British government's decision violates the United Kingdom's COP27 pledge to end deforestation by 2030, which it had committed to less than a year prior in Glasgow.[57][58]

Further concerns were raised by trade unions over clauses in the deal that will allow large companies to sue the UK government behind closed doors if they believe their profits have suffered from changes to laws or regulations. The TUC's general secretary, Paul Nowak, noted that these clauses could allow large companies to sue on grounds such as an increase in the minimum wage or bringing energy companies back into public ownership.[59]

However, Britain's decision to join the CPTPP gives it a strengthened presence and influence in the Asia-Pacific region which is rapidly growing in significance both economically and politically.[60]

Trade secretary, Kemi Badenoch argues the deal is the most significant commercial agreement signed by the UK since Brexit, with a potential to grow in importance as the rise of Pacific Rim countries continues, with applications from China and Taiwan highlighting further market opportunities that Britain could gain access to through CPTPP.[48][61]

• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Economy of the United Kingdom
• Foreign relations of the United Kingdom
• Free trade agreements of the United Kingdom
• United Kingdom–Crown Dependencies Customs Union
• Accession of the United Kingdom to the European Communities