The UK Department for International Trade is soliciting stakeholder input on the UK as potential signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP is a signed trade agreement between 11 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). This bloc of countries covers 13.5% of global GDP with a total worth of USD 10 trillion. Trade with these member countries account for approximately 7% of UK trade. Many of them, including Vietnam, Malaysia and Singapore, have experienced strong economic growth in the past 5 years – growth which is projected to persist in the near future. The trade agreement is set to cut down 95% of tariffs as well as other barriers among its members.
On 7th September 2018, BBGV held a business luncheon to discuss the possibility of the UK’s participation in the CPTPP and what it means for UK businesses in Vietnam. Presenting at the luncheon, Frederick Burke, Managing Partner of Baker McKenzie Vietnam provided information regarding CPTPP provisions of particular interest to British investors. The luncheon also discussed how the CPTPP fits into the larger trade picture that is emerging post-BREXIT, including vis-à-vis the EU-Vietnam Free Trade Agreement and other pending agreements. UK firms can already benefit from the trade deal if they have operations in a member country and their global chains are exporting to other CPTPP members.
At the same time, the UK Government is consulting with members of the public, businesses, trade experts, and any other interested organisations to help inform this work. A period of consultation is open until 26th October, 2018.
Link to the consultation as well as an information pack on CPTPP prepared by the Department for International Trade can be found here.
Source: Department for International Trade