Industry reacts to Asia trade deal

LOGISTICS UK’s director of policy Kate Jennings predicts the deal could lead to significant long term benefits.

She said: “The UK’s accession to the CPTPP may only yield small benefits to the nation’s business in the short term, but the access to innovation and increased productivity which the deal will deliver longer term will be of benefit to the overall health of the UK economy.

“As a nation with longstanding and excellent trading links worldwide, UK PLC stands ready to benefit from the opportunities the new agreement will provide thanks to the country’s interconnected supply chain. The success of the agreement will stand on improved access to high growth markets including simplification of customs processes and future opportunities to digitise the movement of goods to speed connections between the UK and the 11 nations involved.”

The director general of The Institute of Export & International Trade (IOE&IT) Marco Forgione, also welcomed the news.

He said: “We welcome the news of the UK’s imminent accession to CPTTP. This agreement not only reduces trade tariffs for goods, but also sets new rules in areas such as services, investment, intellectual property, digital trade and advanced manufacturing. 

“This is all good news for UK businesses, giving them greater access to one of the fastest growing regions in the world. It will also enhance our ties with countries we already have trading partnerships with, building more resilient supply chains between nations.”

One World Express CEO Atul Bhakta was more cautious.

He said: "The UK has been crying out for major trade deals for two years now. This is what was promised in the aftermath of Brexit, but it has taken a long time for meaningful trade agreements to be formed, either with major global powers or sizeable trading blocs.

"Now, we have to be realistic about how significant this particular deal will be. After all, the Government itself predicts a boost to the economy by £1.8 billion; in other words, increase its size by less than 0.1%. It is clearly not a game-changer, and no doubt critics will be quick to jump on that. 

"But, that said, opening up access to a market of 500 million people, with many goods free from tariffs, this trade deal should not be derided. The UK is the first European nation to join the CPTPP. It will undoubtedly open up new opportunities for British businesses to export globally, and anything that reduces red tape and helps the export market should be celebrated. It might not be a landmark deal for the UK, but it is one that should be welcomed all the same – it is an important step in the creation of the UK as a post-Brexit trading powerhouse."