Britain, which sees the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), including Vietnam, as an important part of its post-Brexit trade plans, is expected to join the major trade pact in early April.
Japan-based Fuji News Network reported the latest move on Tuesday, citing several government sources, Reuters said.
Britain started talks in 2021 with the 11-member CPTPP, which includes Japan, Australia, and New Zealand. Vietnam, Canada, Singapore, Mexico, Peru, Brunei, Chile, and Malaysia are the others. Britain would be the 12th nation to join the trade pact, whose 11 signatories have combined economies representing about 12% of global gross domestic product, making the CPTPP one of the world's largest free-trade areas by GDP.
The UK government, in a release dated February 6, 2023, said: “The UK is working to become the first European member of the bloc this year with negotiations progressing well.
“CPTPP membership not only offers significant direct opportunities for UK exports, but it could also act as a gateway to the wider Indo-Pacific region, which is expected to account for the majority (56%) of global economic growth between 2019 and 2050.”
UK accession could mean more than 99% of UK exports to member countries become eligible for tariff-free trade, the British government said.
Minister of State for Trade Policy Greg Hands said in the release: “This is great news for UK businesses and global free trade. The Indo-Pacific has some of the most innovative and fast-growing economies in the world and closer ties with markets like Malaysia and Chile will demonstrate how our trade agenda is delivering for the whole of the UK.
He added: “I’ve spent the last few days in the Asia-Pacific region to discuss our accession to CPTPP which will take the bloc from 12% to 15% of global GDP and will mean we are using our independent trading powers to bring a new, strong, persuasive voice to a network committed to free trade.”
In Vietnam just a few days earlier, he told the media his working trip came amidst Britain’s pursuit of full membership in the CPTPP this year. Vietnam was the first stop on his trip to Southeast Asian member states of the pact.
According to the General Department of Vietnam Customs, two-way trade between Vietnam and the UK hit $6.83 billion in 2022, up 3.4% year-on-year. Of this, Vietnam's exports rose by 5.2% to over $6.06 billion. However, Britain’s exports to Vietnam decreased by 9.2% to $771 million.