Farming groups react with cautious optimism to UK entry to CPTPP trade block
18th July 2023
After lengthy negotiations, the UK has officially joined 11 other member states in the vast Indo-Pacific trade group last Sunday (16th July), which farming groups say will open up new markets for British food exporters and potentially increase the trade of red meat and dairy on the long term.
Stock photo for illustration purposes only.
Following the conclusion of negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 31st March this year, business and trade secretary Kemi Badenoch has signed the agreement to accede to the trade group in New Zealand on Sunday morning.
This makes the UK the first European economy to join the agreement, bringing the combined GDP of CPTPP members to £12 trillion.
Alongside unlocking new opportunities in the rapidly expanding Indo-Pacific market, entry into the CPTPP also means that more than 99% of current UK goods exports to member countries will be eligible for zero tariffs. Farmers exporting dairy products, for example, will benefits from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico.
Cath White, head of international at soft drink producer Belvoir Farm, believes the new free trade agreement will also ease administrative and commercial trade barriers for UK producers.
“At Belvoir Farm, we export 20% of our turnover to markets across the globe, with one third of exports bound for Indo-Pacific markets, including Australia, New Zealand, Japan and Singapore. This is a fantastic opportunity to grow British brands, especially this year when the spotlight is on the UK,” she said.
Minette Batters, president of the NFU, agrees that joining the CPTPP could present some good opportunities to broaden the global reach of the quality food produced by British farmers.
“Compared to the deals struck with Australia and New Zealand, I am pleased to see that the Prime Minister has stuck to his word and the government has negotiated a far more considered and balanced outcome, particularly with respect to managing market access in our most vulnerable sectors.”
With regards to imported goods, she emphasized the need for the government to uphold the UK’s high food safety standards.
“It is an absolute red line for us that food produced using practices that are illegal here – for instance, the use of hormones in beef and pork production and chemical washes for carcases – should not be allowed on our market,” Ms Batters stressed.
A trade modelling analysis carried out jointly by AHDB and Harper Adams University has also found accession to the CPTPP to have positive implications for UK agriculture, especially when considering the longer-term outcomes.
While initial opportunities are limited, with small increases of British red meat and dairy export expected in the first year, the rising demand for these products in the Asian and South American markets promise further opportunities in the medium to long term, said AHDB trade and policy senior analyst Jess Corsair.
“The UK’s accession to CPTPP is very much about playing the long game in terms of the potential benefits it will bring to UK exporters of red meat and dairy products.
“We don’t expect any dramatic changes to trade overnight, but the forecast for increased demand for red meat and dairy by 2031 in CPTPP countries is encouraging,” she remarked.
