"Business and Trade Secretary Kemi Badenoch formally signed the treaty confirming the UK’s accession to CPTPP – the Indo-Pacific trade bloc now worth £12 trillion [$15.7 trillion] in GDP – in New Zealand today," the ministry said in a statement.
Thanks to membership in CPTPP, 99% of the current UK exports to countries of the partnership will enjoy zero tariffs, according to the statement. In particular, UK farmers, who exported $31.4 million worth of dairy products to Canada, Chile, Japan and Mexico in 2022, will be able to gain benefits from lowered trade barriers, the ministry said.
"I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people," Badenoch said ahead of the signing.
In 2019, companies headquartered in CPTPP member states employed over 400,000 people in the UK, the trade ministry said.
The UK government also noted that this deal would have been impossible had the country stayed in the European Union.
The negotiations regarding the UK membership lasted two years. Sky News reported, citing officials, that the agreement will go into effect in the second half of 2024, after which the UK will become a voting member of the bloc.
The UK has become the first European nation to join this regional trading partnership, founded in 2018. To date, it includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.