9th May 2023 – Analysis of trade data from global financial services firm Ebury reveals the record exports from the UK to the CPTPP last year and suggests exporters should prepare for significant further benefits following the UK’s new deal with the trade bloc.
The statistics revealed annual exports to the CPTPP peaked at £29.0 billion in 2022. It marked an increase of 10% from the previous year (£26.3 billion), and by 15% since 2020 (£25.2 billion) as the UK looks to expand trading relationships with countries outside of the EU following the end of the Brexit transition period.
Imports from the CPTPP have also seen strong recent growth, hitting £35.4 billion in 2022 and nearing the pre-pandemic peak of £36.0 billion in 2019.
Accession to the CPTPP should deepen trading relationships with the countries in the trading bloc with strong links already established with many nations already. Canada, Japan and Singapore are currently the three biggest export partners of the UK within the CPTPP and account for 22%, 22% and 20% of total exports in 2022, respectively.
The government said upon joining the bloc: “Being part of CPTPP will deliver new opportunities for growth in a way that is tailored to the UK’s economy and reflects the future of the global economy.
“This comprehensive agreement will support UK businesses by making it easier for them to trade with CPTPP Parties. It will facilitate innovation and provide consumers with more choice.”
Jack Sirett, Partner at global financial services firm Ebury, commented: “The UK could see significant benefits from its accession to this powerful trade bloc.
“Key commodities like steel, oil, machinery, medicine and other consumer goods are likely to benefit from reduced supply chain friction, lower barriers to trade and increased demand thanks to its new membership. It opens up new markets for many of the UK’s exporters as it continues to re-align trading relationships after Brexit.
“Ultimately, with the UK’s accession to this trade body, businesses need to prepare for growing exports to the countries in the Indo-Pacific Region. This means putting in place hedging solutions and FX risk management so that they are protected against currency swings in pairs that they may not have needed to trade before.”
