The United Kingdom has taken a momentous step towards becoming a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), thereby paving the way for new prospects in the food and beverage industry. This decision will render over 99% of current UK goods exports to CPTPP members eligible for tariff-free trade.
In July, Business and Trade Secretary Kemi Badenoch formally signed the agreement to join the CPTPP, a trade deal encompassing 12 economies across Asia, the Pacific, and now Europe. Minister for Trade Policy Greg Hands underscored the advantages of this agreement for British businesses, particularly highlighting the access to new markets and reduction of trade barriers.
In addition to the CPTPP membership, the UK has also finalized negotiations on a Double Taxation Agreement (DTA) with Peru, a move aimed at safeguarding businesses from dual taxation in both countries. Minister for Trade Policy Greg Hands emphasized the significance of this agreement in fostering a conducive environment for businesses.
This development holds particular significance for the food and drink sector, as it provides new opportunities for British producers to expand their exports to key markets in the Americas and Asia-Pacific. For instance, British cheese and dairy products will qualify for zero tariff status in emerging Pacific-Rim markets, while UK whisky exports to Malaysia are poised to have tariffs phased out within a decade.
The Glasgow Distillery, renowned for its production of premium spirits, is optimistic about the opportunities arising from the UK’s participation in the CPTPP. Founder Liam Hughes underscored the potential for their Single Malt Scotch Whisky brand, Glasgow 1770, to directly benefit from reduced tariffs in Malaysia.
Similarly, Somerdale International, a UK exporter of British cheese and dairy products, views the UK’s participation in the CPTPP as a chance to enhance its presence in emerging markets such as Vietnam, Singapore, Mexico, and Canada. Stephen Jones of Somerdale International emphasized the potential for British cheese to gain zero tariff status in these markets.
Furthermore, the agreement also yields several industry-specific benefits for the food and drink sector, including the elimination of tariffs on UK exports of chocolate and sugar confectionary to Mexico, lower tariffs in Mexico and Canada’s beef, pork, and poultry markets, and permanent limits on the amount of certain goods that can be imported tariff-free from major producers within the CPTPP.
In conclusion, the UK’s ratification of the CPTPP and the conclusion of the Double Taxation Agreement with Peru present a promising outlook for food and drink businesses in the UK. These developments are expected to create new avenues for growth and expansion, providing British producers with access to lucrative markets and reducing trade barriers.