Region 's firms to benefit from Asia-Pacific free trade pact - Chamber

West Midlands firms will welcome “deeper access to emerging markets ” following the UK 's move to join a free trade area with 11 Asia and Pacific nations, business leaders said today.

International Trade Secretary Liz Truss said joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - will boost UK exports and jobs.

Joining the CPTPP would deepen the UK 's access to fast-growing markets and major economies, including Mexico, Malaysia and Vietnam.

Being part of the £9 trillion partnership would also cut tariffs for UK industries including food and drink, and cars, while also creating new opportunities for modern industries such tech and services.

The CPTPP, which was established in 2018, covers a market of around 500 million people and its members include Australia, Canada, Japan, New Zealand, Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.

Greater Birmingham Chambers of Commerce says thousands of firms across the region will relish the prospect of access to these fast-growing markets.

In 2019, just over 12,000 West Midlands businesses exported £31.7bn worth of goods across the globe - the third highest of any region in the UK behind London and the South East.

Mandy Haque (pictured), international director at the Chamber, said: “We welcome news that the UK will become the latest member of the CPTPP as the Government looks to cultivate and deepen ties with some of the world 's fastest growing economies.

“Securing trade deals of this scale and ambition will not only strengthen our international standing but will also help restore confidence for international investors and offers a clear reminder that Britain remains very much open for business in such testing times.

“From a local perspective, there are already thousands of businesses in the West Midlands trading overseas and I 'm sure many will relish the prospect of gaining deeper access to emerging markets primed for even further development.

“At the heart of the deal, the flexibility displayed around digital trade and rules of origin in dealing with partner countries such as Japan and a number of Commonwealth nations will no doubt appeal to local exporters - the topic of which I 'm sure we will cover at the events taking place during our upcoming Commonwealth Opportunity 's Week.

“As the negotiations evolve, the International Team at the Chamber will be on hand to inform local businesses of the latest developments and how they can secure the potentially vast benefits that will be on offer. ”

UK trade with the group was worth £111 billion in 2019, growing by 8 per cent a year since 2016.

Benefits that CPTPP membership will bring for businesses include:

• Modern digital trade rules that allow data to flow freely between members, remove unnecessary barriers for businesses, and protect commercial source code and encryption.
• Eliminating tariffs quicker on UK exports including whisky (down from 165 per cent to 0 per cent in Malaysia) and cars (reducing to 0 per cent in Canada by 2022, two years earlier than through the UK-Canada trade deal).
• Rules of Origin that allow content from any country within CPTPP to count as 'originating '. For example, this would mean that cars made in the UK could use more Japanese-originating car parts, such as batteries.
• Easier travel for business people between CPTPP countries, such as the potential for faster and cheaper visas.

In 2019, 7.8 per cent of UK exports to Canada were from the West Midlands, while the region accounted for 8 per cent of UK exports to Australia and 4.8 per cent to Japan

To find out more about Commonwealth Opportunities Week click here.