London: On Sunday, Britain became the 12th nation to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade bloc that includes Japan, Australia, and Canada. This marks a key step in the UK’s post-Brexit strategy to enhance trade relations in the Asia-Pacific region and strengthen its global economic network.

Having announced its intention to join the CPTPP last year, the UK now enters its most significant trade deal since leaving the European Union. As a member, Britain will immediately benefit from reduced tariffs and apply the trade rules of the pact with eight out of the 11 existing members, including countries like Brunei, Chile, and Japan.

The agreement will formally come into effect with Australia on December 24, and will extend to the final two members—Canada and Mexico—60 days after their ratification. For Britain, this marks the first-ever free trade agreements with Malaysia and Brunei, while the CPTPP also offers deeper trade provisions with countries it had previously dealt with, particularly around “rules of origin” for businesses.

Unlike the European Union, which has a single market for goods and services, the CPTPP does not require regulatory harmonization, allowing for more flexible trading arrangements. Although Britain anticipates the deal could generate around £2 billion annually—less than 0.1% of its GDP—the agreement's significance is also strategic. It gives the UK a voice in the potential inclusion of new members, such as China and Taiwan.

Originally conceived as the U.S.-backed Trans-Pacific Partnership to counterbalance China’s economic influence, the pact was reformed after the U.S. withdrew in 2017, becoming the CPTPP. Costa Rica is the next country set to join the pact, with Indonesia also expressing interest.