UK’s Pacific trade plans take shape
Free trade

UK’s Pacific trade plans take shape

The United Kingdom inches closer to joining CPTPP, the free trade agreement of Pacific Rim states, and signs a double taxation agreement with Peru.

Author: Karoline Gees
Karoline Gees
26.04.2024

After signing an accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in July 2023, the UK has now ratified its membership with Royal Assent, bringing the country a significant step closer to joining CPTPP later this year. In order to further enable trade with Pacific countries, the UK has also signed a double taxation agreement with CPTPP member state Peru.  

UK first European country joining CPTPP


With Australia, Brunei, Chile, Japan, Canada, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam, all 11 members of CPTPP are Pacific Rim states, making the UK the first European country to join. While the CPTPP block is expected to account for 15% of global GDP with the UK as a member, the benefits to the UK are mostly strategic. 

In the long-run, the increase in the UK’s GDP from joining CPTPP is estimated by the Department for International Trade to amount to only 0.08%. The fact that the UK already has bilateral trade agreements with nine of the currently 11 CPTPP member states further limits its economic effects. However, it is expected to strengthen economic ties with Asia especially. And as an economically potent member of the block, the UK is eager to play a formative role in shaping CPTPP’s future, according to the UK government.

For the agreement to enter into force for the UK in 2024, at least 6 of the 11 member states need to ratify its accession. Detailed information about the treaty, including business guidance, can be found on the UK government's website. 

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UK-Peru tax agreement

Another important step towards furthering trade between the UK and Pacific Rim states is the double taxation agreement with Peru, a long-standing trading partner with bilateral trade worth £1.8 billion in 2023. It aims to alleviate costs for manufacturers and other exporters, who no longer face taxation in both the UK and their destination country. 

The double taxation agreement comes after several years of discussions between tax authorities of both countries and was consistently asked for by businesses in Peru and the UK.

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