UK joins CPTPP trade pact as new data shows major economic benefits
Business and Trade Secretary Kemi Badenoch signed documents in New Zealand Sunday for the UK to become the 12th signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The signing kickstarts the UK’s membership of what has been called a modern and ambitious trade deal. It is also the first European country to be part of the pact that has 11 other members in the Asia-Pacific region, including Vietnam.
The signing took place in Auckland in the presence of New Zealand Trade Minister Damien O’Connor, Vietnamese Minister of Industry and Trade Nguyen Hong Dien, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalization Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.
The signature is the formal confirmation of agreement for the UK to join the group, following the substantial conclusion of negotiations earlier this year.
The British government will now seek to ratify the agreement, after parliamentary scrutiny. Other CPTPP members have completed their own legislative processes.
“Total trade between the UK and Vietnam has recently reached £6.9 billion (over $9 billion), an increase of 29% on last year and I'm confident that the UK's accession to CPTPP will strengthen this even further,” Iain Frew, British Ambassador to Vietnam, says in an embassy press release.
“This shows the UK’s strategic commitment to the Indo-Pacific region... I look forward to working closely with the Government of Vietnam, other partners and businesses to make the most of this new partnership.”
A new British government report says that one in every 100 UK workers was employed by a business headquartered in a CPTPP member in 2019, equal to more than 400,000 jobs in the country.
Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion ($238.26 billion) in 2021, by guaranteeing protections for investors, according to the British Embassy release.
Badenoch said in Auckland that joining “the exciting, growing, forward-looking trade bloc will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”
The British government report says CPTPP investment accounted for over £240 billion (around $314.2 billion) in turnover in London, £35 billion ($45.82 billion) in the South East and £18 billion ($23.56 billion) in the East of England.
It also says that CPTPP companies punch above their weight economically. While they account for 0.3% of all businesses in the UK, they generate 6.1% of the UK’s total turnover, 20 times higher than the proportion of businesses they represent.
The UK will be the first European member and first new member since CPTPP was established in 2018. Its 11 existing members are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
“Being part of CPTPP will mean that more than 99% of current UK goods exports to CPTPP countries will be eligible for zero tariffs. Dairy farmers, for example, will benefit from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico. This builds on the £23.9 million (nearly $31.3 million) worth of dairy products we exported to these countries in 2022,” the embassy press release says.
It quotes Warrick Cleine, chairman of the British Corporate Advisory Council in Vietnam, also chairman and CEO of KPMG Viet Nam, as saying: “CPTPP is a trade agreement like no other. While the participants are diverse and span many of the world’s fastest-growing geographies, CPTPP members share a common commitment to a rules-based trading system that goes beyond trade in goods, and facilitates the digital economy and trade in services.
“Vitally, the CPTPP should be viewed in the C-suite as another essential part of trade infrastructure - the negotiators and politicians did their part – business leaders now need to lean into the opportunity.”
The release also quotes chairman of the British Chamber of Commerce in Vietnam, Chris Jeffery, as saying: “Our belief is that trade between Vietnam and the UK will continue its rapid growth, marking the start of our next 50 years of partnership and growing links between the two countries. The opportunity is now there for UK companies to fully benefit from the UK’s focus on developing ties and links with Asia.”
- Read More
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Bamboo Capital - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
Islamic economy makes up 48% of Indonesia’s GDP
The contribution of Islamic business activities to Indonesia’s GDP has been estimated at 48%, local authorities reported at the 11th Indonesia Sharia Economic Festival (ISEF).
Southeast Asia - Fri, November 1, 2024 | 8:28 pm GMT+7
Restructured construction giant Tracodi gets set to execute ambitious plans
After changing its name and restructuring as a group, Tracodi Construction Holdings JSC (HoSE: TCD), a member of Bamboo Capital Group (HoSE: BCG), has completed a leadership shake-up and is poised to achieve rapid growth.
Bamboo Capital - Fri, November 1, 2024 | 4:43 pm GMT+7
Philippines requests companies to pay for plastic waste treatment
The Philippines expects its "Extended Producer Responsibility" (EPR) that came into force last year will help it curb plastic waste
Southeast Asia - Fri, November 1, 2024 | 4:30 pm GMT+7
Indonesia warns of rising online terrorism
Indonesia's National Counter-Terrorism Agency (BNPT) has warned of a shift in terrorism tactics, moving from public attacks to online platforms that target vulnerable groups, particularly women and children.
Southeast Asia - Fri, November 1, 2024 | 4:29 pm GMT+7