The Partnership now comprises 12 countries, together comprising about 15% of global economic activity. The UK is the first additional country to join the Partnership since its inception in 2018 and the first European country to do so. 

Exporters of goods will welcome greater flexibility on rules of origin in relation to free trade agreements. Although the UK already has trade agreements with nine of the eleven other member countries, full membership will simplify multilateral trade within the block. The government gives the example of a British company exporting a car engine to a CPTPP country that could incorporate the engine into a car and sell it tariff-free to any other member country. 

The agreement will provide new benefits for exporters of services, as they will no longer have to establish an office in a member state to compete with local businesses. Digital trade will also benefit from more straightforward arrangements and rules. 

Membership provides a free trade agreement with Malaysia for the first time. Tariffs of around 80% on whisky and 30% on cars will be eliminated. Five of the scotch whisky industry’s top 20 export markets are CPTPP members. 

The 11 existing members of the Partnership are: 

• Australia 
• Brunei 
• Canada 
• Chile 
• Japan 
• Malaysia 
• Mexico 
• New Zealand 
• Peru 
• Singapore 
• Vietnam 

South Korea, Uruguay and China are also seeking to join. 

Strong and Herd will share more details of the new arrangements with clients as soon as they become available. 

Further information can be found using the following government links: 

• The Department for Business and Trade’s press release 
• Top 10 benefits document 
• Conclusion of Negotiations document 

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Understanding Origin & Preference

Understanding Free Trade Agreements