The UK has officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a significant trade bloc spanning the Indo-Pacific region.
This move is expected to provide a substantial economic boost to Wales, potentially adding £110 million to the nation’s economy in the long term.
Expanding trade opportunities
CPTPP comprises 12 member nations, including Australia, Japan, Vietnam, Canada, and now the UK, representing a combined GDP of £12 trillion. In 2023, Wales exported £1.2 billion worth of goods to these countries, with machinery, medicines, and pharmaceuticals among the key sectors set to benefit from reduced tariffs and simplified regulations.
Welsh businesses can now enjoy enhanced access to these markets, supporting the UK Government’s broader strategy to drive economic growth and improve living standards. The initiative is projected to increase household wages across the UK by £1 billion annually, aligning with the Government’s “Plan for Change” agenda.
Government leaders speak out
Business and Trade Secretary Jonathan Reynolds said:
“Britain is uniquely placed to take advantage of exciting new markets, while strengthening existing relationships. Today’s news is further proof that the UK is a wonderful place to do business, with an open, outward looking economy driving the growth people can feel in their communities.
Agreements like this boost trade and create opportunities for UK companies abroad. This is a proven way to support jobs, raise wages, and drive investment across the country which is key to this Government’s mission to deliver economic growth.
Our Trade Strategy, published next year, will finally put in place a long-term, strategic plan for international trade that helps businesses and consumers and, ultimately, grows the economy”.
Welsh Secretary Jo Stevens said:
“This UK Government is ensuring the best possible trade deals for growing the Welsh economy and putting money into people’s pockets. Today’s deal means Welsh businesses will have better access to 11 major economies in the Indo-Pacific, including Australia, Canada and Vietnam.
Welsh businesses will see less red tape and lower tariffs when exporting to these countries, boosting the Welsh economy and helping to deliver sustained growth”.
Success stories in Welsh industry
Pontyclun-based Concrete Canvas, a company specializing in innovative concrete solutions, has already seen substantial trade with CPTPP countries, with exports to these markets accounting for over 40% of its turnover. Thanks to the agreement, the company will now save 20% on exports to Malaysia, further enhancing its competitiveness.
Darren Hughes, International Business Development Manager at Concrete Canvas Ltd. commented:
“The CPTPP region is already hugely important to our business as we export to every CPTPP member.
Thanks to the UK becoming a member, we’ll find it cheaper to export thanks to tariff reductions, in particular with Malaysia, with whom we now have a Free Trade Agreement for the very first time.
Those tariff reductions will let companies like Concrete Canvas be more competitive in those markets, and free up capital to invest in new products and better operations”.
Broader economic impact
The agreement is also expected to benefit other key Welsh sectors, including automotive, food, and drink industries, through modern “rules of origin” provisions. These rules allow goods assembled from CPTPP-origin parts to qualify for lower tariffs, promoting streamlined trade and cost savings.
Welsh service firms could also gain easier access to CPTPP markets, particularly in financial and professional services. In 2023, Welsh companies exported over £6.8 billion worth of services globally, highlighting the potential for further growth under this agreement.
A growing trade network
CPTPP’s expansion potential adds another layer of opportunity. Countries such as Indonesia, Costa Rica, and others are exploring membership, signaling future growth in trade and strategic partnerships.
Simultaneously, the UK is negotiating trade deals with other major partners, including the Gulf Cooperation Council, India, Switzerland, and South Korea. These efforts aim to complement the benefits of CPTPP, enhancing the 196,000 export-supported jobs already present in Wales.
Promoting a global Wales
Darren Hughes, International Business Development Manager at Concrete Canvas Ltd. commented:
“The CPTPP region is already hugely important to our business as we export to every CPTPP member.
Thanks to the UK becoming a member, we’ll find it cheaper to export thanks to tariff reductions, in particular with Malaysia, with whom we now have a Free Trade Agreement for the very first time. Those tariff reductions will let companies like Concrete Canvas be more competitive in those markets, and free up capital to invest in new products and better operations”.
As the UK integrates deeper into CPTPP, Welsh businesses and consumers stand to benefit from reduced trade barriers, increased market access, and a strengthened economy. Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.