In his latest trade blog, William Bain, examines if the UK’s membership of the Comprehensive and Progressive Agreement For Trans-Pacific Partnership (CPTPP) has made a difference for businesses and what happens next:
It is now a year since the UK became a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This wordy mouthful is the official name for a predominantly Indo-Pacific trade bloc of 12 countries which made up 15% of global economic output in 2025.
For the past 12 months, UK companies have enjoyed enhanced trading terms with nine of the other members, with just Canada and Mexico yet to ratify the UK’s accession. Prospects are good for positive news on both fronts shortly.
As with any trade agreement it can take time for businesses to understand and make use of the benefits. But CPTPP is now better known by businesses compared with last autumn.
In some cases, it has allowed firms to make use of lower tariffs than we originally had with individual countries. For example, for key food and drink exports to Malaysia, CPTPP either reduces or eliminates tariffs completely.
Being a member also gives UK manufacturers greater flexibility in their supply chains, as they can source more raw materials and components from across the bloc without incurring higher tariffs.
When the agreement was first negotiated around 15 years ago, it had relatively modern commitments on data flows, but international trade has moved on, together with the ambitions of business. Issues surrounding trade in services and economic security have also moved centre-stage in the past few years.
Last month in Melbourne, Trade Ministers agreed to refitting the Agreement to suit the world of international trade we now live in and expect to evolve. A twelve-month negotiating workstream has been created for delivery on the key elements of the General Review Report they published.
The key points of focus are expected to be:
- Updating terms on customs administration and trade facilitation
- The inclusion of principles on authorised economic operators
- Consistency of customs processes
- The creation of a new customs committee
- Domestic regulation in services
- Financial services – including data flows and e-payments
- E-commerce
- Competitiveness
- Supply chain resilience
Ministers have also set negotiators the task of dealing with emerging issues not previously dealt with. These include:
- National treatment of investment
- State-owned enterprises
- Innovation and technology
- Gender mainstreaming
- Economic coercion
- Market distorting practices.
The BCC is engaging with the UK government, along with High Commissions and Embassies within CPTPP on the potential opportunities within this refit of the agreement.
We have set out eleven immediate priorities for improving the agreement’s trading terms to boost growth:
- Include a new Chapter on critical minerals and supply chains, and engaging in long-term co-operation with the ASEAN states and the EU.
- Additional provisions on sustainability and market access for green energy sources.
- Improve the efficiency of customs processes between CPTPP states and consider mutual recognition of authorised economic operator (AEO) schemes between the parties.
- Make progress on technical barriers to trade rules such as permitting e-labelling, mutual recognition of professional qualifications, reaffirm non-discrimination for like products provisions.
- Update and liberalise the chapter on services, recognising that professional and business advisory services are key sectors for services growth, so providing more access for example in legal services.
- Refer to best practice among CPTPP states, consider an MFN-type clause to raise market access in services, and reflect commitments made by parties at the WTO, e.g., in the Domestic Regulation in Services agreement.
- Liberalise rules on temporary entry of professionals from CPTPP states, and make rules on intra-company transfers less onerous.
- Refit the e-commerce chapter in light of recent developments to reflect modern best practice and agreements on digital trade, such as the UK-Singapore Digital Economy Agreement, and settled text among over 70 CPTPP members at the WTO in Geneva on the Agreement on Electronic Commerce.
- Oppose data localisation measures and maximise flows of data where possible.
- Strengthen protection of geographic indicators in the Intellectual Property chapter of the agreement.
- Refresh and deepen provisions on climate change obligations.
Last week, we gathered with key UK businesses at the FCDO, to maximise business involvement in this refit policy. The room was filled with enthusiasm, and the BCC is positive that 2026 will deliver further growth in UK trade with the fastest growing economic region in the world.