With the Paris Olympics upon us, Team GB appear to have a strong team after impressive back to back performances in Tokyo 2020, Rio 2016 and London 2012.
Are GB businesses in similarly good shape as the Olympic GB team post Brexit?
Assuming the new Labour government does not reverse CPTPP, the United Kingdom is heading for a trade agreement in 2024 or early 2025 with 11 countries comprising of:
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. South Korea also plans to join the CPTPP (The Comprehensive and Progressive Agreement for Trans-Pacific Partnership) soon which will mean that this is a trading block of 500 million people, 15% of Global GBP (£12 trillion).
We should add that Australia and New Zealand already have bilateral agreements in place with the UK.
What are the benefits of CPTPP? This is gov.uk’s version:
- Strengthening ties with some of the world’s most dynamic economies
- Opening new markets for services providers
- Modern and ambitious digital and data provisions
- Cutting tariffs on goods exports
- New opportunities to diversify supply chains
- Providing the whole of the UK with new export opportunities
- A trade deal with Malaysia and Brunei for the first time
- More access to high-quality imported goods
- Strengthening economic security
- Encouraging investment
The Guardian newspaper is less upbeat and short term focused saying at best the agreement will potentially add 0.04% to GDP. These 11-12 nations are largely dynamic and high growth economies so there are surely longer term financial and cultural benefits.
As UK citizens cannot even reside in EU countries post Brexit for more than 3 months, let alone work in EU nations, the Rishi Sunak government had no choice other than accelerate bi-lateral relations outside Continental Europe.
Business persons at least have an opportunity to set up businesses in less onerous tax regimes, albeit further afield than European neighbour nations.
With CPTPP agreements, according to DBT (Department of Trade and Industry) there will likely be other advantages:
- A single rule of origin rather than 4 rules of origin
- Consistent, predictable and transparent trading
- Standardised documents and efficient release of goods from CPTPP customs
- Advanced notice of new rulings
- Electronic processing and more supply chain integration
Make sure your business is Olympic fit
GB business needs to be more innovative and creative and rely less on the financial services industry, just as Olympics Team GB is less reliant on “track and field” events.
GB business needs to be humble, less conservative, flexible and risk averse and extremely partnership and customer service focused in order to thrive with CPTPP nations.
Business with CPTPP countries will require strong local partnerships in each country.
This is where the experienced team of Transaction Focus can help:
By coordinating business travel and trade shows with our TBA team, hiring right fit sales teams on your behalf, identifying and onboarding distributors and even identifying companies to acquire.
Get Olympic Fit Quick
Transaction Focus represents companies from all around the World, not just UK companies