Context:

Recently, the United Kingdom became the 12th member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

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• It has been marked as the biggest trade deal for the UK since leaving the European Union under the Brexit referendum in 2016.
• The previous British government signed the accession treaty last year and most members of the CPTPP ratified the UK's entry.
• The UK has become the first European country to join CPTPP. 

Significance for the UK

More Market Access: The UK now has easier access to the fast-growing markets in the Indo-Pacific region, which could lead to more exports and business opportunities.

Economic Growth: While the direct economic impact on the UK’s GDP might be small, the long-term benefits would come from increased trade and investment.

• Britain estimates the pact may be worth 2 billion pounds ($2.5 billion) a year in the long run.

Countering China: The CPTPP is seen as a way to balance China’s growing influence in the region. 

• The UK’s membership strengthens the group and its ability to set global trade standards.

Diversification: By joining, the UK will be able to reduce its reliance on trade with Europe and also will explore new markets in the member countries.

Lower Costs: The CPTPP’s flexible rules allow UK businesses to source materials from different countries within the agreement thus potentially lowering production costs.

Influence over New Members: The UK now has a say in deciding whether new countries, like China or Taiwan, can join the agreement, which has important political consequences.

Concerns for the UK

• Some House of Lords members are questioning how the UK will ensure that environmental and animal welfare standards are upheld under the newly signed CPTPP.
• The UK is agreeing to lower tariffs on Malaysian palm oil imports (currently up to 12%), despite concerns that palm oil production contributes to deforestation.
• UK’s trade union experts worry that increased investment could lead to multinational companies challenging UK policies in court. 

About CPTPP

It is a trade agreement involving 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK. 

It aims to improve trade by reducing tariffs (taxes on goods) and making it easier to trade services and investments between countries.

The agreement started as the Trans-Pacific Partnership (TPP), led by the U.S., but after the U.S. pulled out in 2017, it was renamed as the CPTPP.

The founding members signed the CPTPP trade pact in March 2018.

• The UK is the first non-founding country to join, and will be the pact's second-biggest economy after Japan. 

Objectives of CPTPP: - Reducing tariffs, Increasing market access for members, rule-based trade (IP protection, fair trade, etc).

Combined, its members currently account for roughly 15% of global GDP and a population of around 500 million.