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Writer's pictureArne Mielken
Dec 28, 20245 min read

FTA - UK Joins CPTPP: A New Era for British Trade

UK businesses can trade with key CPTPP countries. Learn what this means for your customs and export processes.


What Questions I Will Answer in This Blog:

  • How will the UK's accession to CPTPP affect international trade?

  • Which countries are included in this agreement from December 2024?

  • What does this mean for customs professionals handling imports and exports?


Introduction

The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) marks a significant milestone for UK trade. With the inclusion of several Asia-Pacific economies, UK businesses will have increased access to high-growth markets. As a customs professional with over 20 years of experience, I’ll take you through what this new agreement means for the customs landscape, and how you, as an import/export professional, can navigate these changes.

“The UK’s accession to CPTPP is an exciting opportunity for UK businesses. It is essential for us as customs professionals to stay ahead of these changes to facilitate smoother, more efficient trade.” – Arne Mielken, Managing Director of Customs Manager Ltd.

Abbreviations I Use in this Blog

To ensure clarity, I’ll explain the abbreviations and terms used:

  • CPTPP: Comprehensive and Progressive Agreement for Trans-Pacific Partnership

  • UK: United Kingdom

  • Import/Export: Goods or services brought in or sent out of a country

  • Customs Clearance: The process of clearing goods through customs when importing or exporting.


What Does the UK’s Accession to CPTPP Mean for Trade?

The UK can trade under CPTPP with many countries in the Asia-Pacific region. The complete list includes:


  • Japan

  • Singapore

  • Chile

  • New Zealand

  • Vietnam

  • Peru

  • Malaysia

  • Brunei

  • Australia


These countries have ratified the UK’s accession, which will facilitate preferential trade terms, including reduced tariffs and enhanced market access. However, key members like Canada and Mexico have yet to ratify the UK’s accession. This delay means UK traders will not be able to benefit from CPTPP trade terms with these countries until they do.


What Will Change for UK Customs Professionals?

As a customs professional, your role in advising businesses and ensuring smooth customs clearance has just become even more critical. CPTPP promises to introduce new trading opportunities, but these come with new documentation, rules of origin, and compliance requirements.


Understanding the Implementation Process

It’s essential to note that the CPTPP requires ratification by each member state before the agreement can be fully applied. For each new Party that ratifies the agreement, the trade terms will take 60 days to take effect. This step-by-step process is vital for UK businesses to understand when planning their operations.


Additionally, the agreement is not just about reducing tariffs—it also brings about significant changes in rules of origin, technical standards, and other customs procedures. As these countries begin to implement the CPTPP, it is crucial for you, as a customs professional, to stay updated on how these changes will affect the movement of goods across borders.


The Benefits of CPTPP for UK Traders

The CPTPP is more than just a trade agreement; it is a strategic tool for businesses to increase market access, reduce customs duties, and diversify supply chains. Here are some key benefits:


  1. Tariff Reductions: Many tariffs on goods traded between CPTPP countries will be reduced or eliminated, allowing UK exporters to benefit from cost savings.

  2. Increased Market Access: The UK will have preferential access to some of the world's most dynamic and fast-growing economies, like Japan, Australia, and Vietnam.

  3. Regulatory Cooperation: The agreement will simplify regulations, making it easier for businesses to navigate complex customs procedures.


As a customs consultant, understanding these benefits means you’ll be able to guide your clients effectively, helping them navigate the complexities of the new trading environment and secure their place in these emerging markets.


Navigating the Complexities of New Trading Partners

UK traders should be prepared for several challenges when dealing with new trading partners under CPTPP.


These include:

  • Rules of Origin: As with any free trade agreement (FTA), understanding the rules of origin will be crucial to ensure that goods qualify for preferential treatment.

  • Documentation Requirements: CPTPP will require new documentation and proof of compliance, which could involve additional paperwork for customs clearance. Be prepared for increased administrative requirements.

  • Customs Tariff Updates: As tariffs are reduced or eliminated, it’s important for businesses to update their customs tariff codes and classifications. This is where you, as a customs agent, will need to be proactive, ensuring the correct application of these changes.


You’ll play a pivotal role in helping your clients navigate the new documentation and regulatory landscape under CPTPP, advising on the best practices for compliance.


How UK Traders Can Benefit from CPTPP

With the right approach, UK traders can leverage CPTPP to access new markets and reduce costs.


Here’s how:

  1. Preparation for Tariff Changes: Keep up with updates on tariffs and rules of origin to ensure compliance when trading with new CPTPP partners.

  2. Focus on Compliance: With new regulatory standards, your clients will rely on your expertise to stay compliant and avoid costly delays or penalties.

  3. Leverage Expertise in Customs: As a customs professional, you are uniquely positioned to help businesses capitalise on new trade opportunities by ensuring smooth customs clearance processes.


Your in-depth understanding of the trade deal and your ability to stay up-to-date with changes will be crucial in helping businesses not just survive but thrive in this new global trade environment.


Arne’s Takeaway

The UK’s accession to CPTPP presents a wealth of opportunities for UK businesses, but it also comes with complexities. As customs professionals, it’s our job to ensure that businesses can navigate these changes with confidence. By staying informed about the evolving trade terms, and advising on the best strategies for customs compliance, we can help businesses make the most of these new opportunities.


Expert Recommendations:

  • Stay Updated: Keep up with the latest developments regarding CPTPP ratification by other countries.

  • Prepare for New Tariffs and Regulations: Ensure that your team is trained and prepared for the customs implications of CPTPP.

  • Monitor Documentation: Be vigilant about the new documentation requirements and help your clients streamline their customs clearance processes.


More Information and Links


CPTPP - Rules of Origin - Legal Text

Find here the legal text on the Rules of Origin under the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, CPTPP.


CPTPP: Membership perks for British Exporters !?!

Will the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) truly benefit British exporters? What are the UK CPTPP membership perks? We explore.


CPTPP: What benefits for my Industry?

We look at the construction, life science, food & drink and manufacturing sectors and explore how they can benefit from CPTPP.


Unlocking the Benefits: CPTPP - Rules of Origin

We are covering the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, CPTPP, we will break down all the relevant provisions of the Free Trade Agreement. Let's focus on Rules of Origin.


Fancy a Call?

I offer comprehensive support for navigating the complexities of the CPTPP. I would love to talk to you about your questions and challenges with the new trading opportunities this agreement brings. I offer a free expert call of up to one hour, which you can book seamlessly here.

I provide public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. Our membership services include weekly customs trade intelligence and updates. I also offer UK import and export customs clearance services. For more details on services, visit www.customsmanager.org.


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