Comprehensive and Progressive Agreement for Trans-Pacific Partnership
CPTPP Analysis
Since June 2020, the UK Government has been working towards accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
11 countries (Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei Darussalam, Chile, Malaysia, Peru, and Vietnam) are already signatories to the CPTPP, and the CPTPP has entered into force for 10 of the countries, with only Brunei yet to complete the ratification process.
Malaysia and Chile officially ratified membership of the CPTPP earlier this month. China, Taiwan, Ecuador and South Korea have also applied to join the CPTPP.
CPTPP impact
The member countries of the CPTPP account for 10% of global GDP and 7% of global GDP growth in the past 10 years (2012-2022). In 2019, goods and services to CPTPP countries from the UK amounted to 8.4% of all UK exports and the member countries made up 7.3% of imports.
The UK Government’s own modelling of CPTPP accession shows that immediate economic benefits are likely to be limited, with an increase in UK GDP of just 0.08%. However, this forecast could be improved if countries such as South Korea and Thailand eventually accede to the CPTPP as well. The Department of International Trade’s economic modelling predicts that UK exports to CPTPP will lead to an increase of £1.8 billion in UK GDP long-term.
CPTPP concerns
The House of Lords International Agreements Committee was cautious in its appraisal of the UK’s hopes to join the CPTPP. The Committee suggested that the UK’s negotiating objectives were not sufficiently transparent, and also noted the potential for climate, IP, data, and food standards to be compromised by accession to the agreement.
The Committee has also raised concerns about the potential for terms of the CPTPP to conflict with other international agreements - for example, the UK is a member of the European Patent Convention (EPC), but rules of membership to the EPC conflict with CPTPP intellectual property rules.
In 2021, the Trade Union Congress (TUC) expressed concerns shared with trade unions across CPTPP countries that the deal would significantly threaten workers’ rights, regulatory standards, public services and democracy. The CPTPP has no effective mechanism to enforce International Labour Organisation Standards.
The TUC raised concerns about the presence of the Investor-State Dispute Settlement (ISDS) corporate court system in CPTPP, a mechanism allowing foreign investors to sue governments for regulations or actions that they believe threaten their ability to make profits. ISDS have been condemned by trade unions globally.
CPTPP News
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