UK concludes tax agreement with Peru, ratifies deal to join CPTPP

Joining CPTPP—which will account for 15 per cent of global gross domestic product (GDP) with the United Kingdom included—means over 99 per cent of current UK goods exports to CPTPP members will be eligible for tariff-free trade.

The DTA with Peru will reduce costs and offer certainty to businesses in both sides, and will provide opportunities for substantial increases in bilateral trade and investment, an official press release said. 

UK business and trade secretary Kemi Badenoch signed the deal last July to join the CPTPP that spans 12 economies across the Asia-Pacific and Europe.

Benefits of UK accession to CPTPP include less red tape for UK services, Increased flexibility via modern ‘rules of origin’ for British goods, investment provisions that limit barriers and cheaper import prices, thanks to reduced tariffs.

Only six economies, in addition to the United Kingdom, need to ratify by October for the deal to enter into force by the end of the year. Singapore, Japan, and Chile have already ratified, with other countries in the works. 

“The UK intends to be an influential member of CPTPP, making its voice heard on all key matters, and is already involved in meetings and discussions with CPTPP Parties on the future of the agreement. Peru, a member of the bloc, is a longstanding trading partner for the UK, with bilateral trade worth £1.8 billion last year,” Hands said.

“The UK’s addition to this bloc will open up new opportunities for both inward and outward investment. Trade rules will be more favourable for manufacturers looking to sell products to other member countries and data transfers for firms in the services sector will also be more straightforward,” William Bain, head of trade policy at the British Chambers of Commerce (BCC), said. 

“We look forward to the avenues for fresh opportunities and collaborations this will unlock, paving the way for enhanced economic partnerships and growth opportunities for our members in the UK-Japan, and wider regional ecosystem,” BCC Japan executive director Sarah Backley said.

“This historic agreement not only fosters trade liberalisation but also offers expanded market access, boosts to GDP, and strategic influence, particularly benefiting sectors, such as services and digital trade for both British and Malaysian enterprises. This also promises enhanced options and affordability for consumers and businesses alike, heralding a new era of economic dynamism and collaboration,” British Malaysian Chamber of Commerce chief executive officer Jennifer Lopez said.

Fibre2Fashion News Desk (DS)