UK welcomed to CPTPP

New Zealand Prime Minister Chris Hipkins says the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is great news for the region and New Zealand.

Hipkins says trade is not only a priority for the New Zealand Government but is essential to the country’s economic recovery.

“Worth $60 billion in two-way trade with partner economies, this agreement is providing significant benefits and opportunities for our exporters,” says Hipkins. “By welcoming the UK into the CPTPP family, we will only see those economic opportunities for growth and recovery further increase.”

With the accession of the UK complete, the CPTPP now covers more than 500 million people globally and is worth over 15% of the world’s Gross Domestic Product (GDP).

“The United Kingdom is a G7 member and the world’s sixth-largest economy. It is also committed to high standard, rules-based trade, making it a perfect fit for the CPTPP,” says Trade and Export Minister Damien O’Connor.

O’Connor says having the UK “inside the tent” will strengthen the rules-based trading system in the Pacific region, benefiting Kiwi exporters, providing greater certainty, and enhancing regional supply chains for trade.

“It is one of our largest trading blocs with more than half a million New Zealanders employed in firms that export to our CPTPP partners, and continuing to create jobs,” he says.

“The Agreement delivered tariff savings of more than $330 million on New Zealand exports in its first two years alone – with many more millions of benefits flowing since then.”

O’Connor says New Zealand has always supported expanding the bloc and bringing in economies that are willing and able to meet its high standards.

“New partners like the United Kingdom increase the value of this Agreement and demonstrates the ongoing importance of the CPTPP as a critical piece of global trade architecture,” he says.

O’Connor is chairing the CPTPP Commission meeting that is being attended by 11 Trade Ministers and delegations from CPTPP economies.

“The addition of the UK demonstrates our collective commitment to promoting free trade, open and competitive markets, the rules-based trading system and economic integration in our region and beyond,” he says.

“The United Kingdom has come through the robust accession process and the overall quality of its commitments has set a good precedent for future economies that wish to join.”

The UK’s accession to CPTPP complements the outcomes of the NZ-UK FTA, which is now in force with 99.5 per cent of New Zealand’s current goods exports entering the UK market duty free.