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UK to join CPTPP, strengthening trade ties with Malaysia

06 Dec '24
2 min read
 UK to join CPTPP, strengthening trade ties with Malaysia
Datuk Seri Utama Tengku Zafrul Aziz, Malaysia's minister of investment, trade and industry (Left) with David Wallace, acting British high commissioner to Malaysia. Pic: UK in Malaysia/X

Insights

  • The UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15, 2024, marking its first free trade agreement with Malaysia.
  • The deal boosts market access, diversifies supply chains, and expands opportunities for key sectors.
  • It also opens government procurement markets and secures investment liberalisation commitments.
The United Kingdom (UK) is set to officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15, 2024, marking the first-ever free trade agreement between the UK and Malaysia. At a launch event in Kuala Lumpur, David Wallace, Acting British High Commissioner to Malaysia, and YB Datuk Seri Utama Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, jointly unveiled the countdown to the UK’s entry into the agreement.

CPTPP, which includes 12 countries across five continents, will see the UK’s accession increase the bloc's total Gross Domestic Product (GDP) from over £9 trillion (~$12.06 trillion) to approximately £12 trillion (~$16.08 trillion), boosting its share of global GDP from 12 per cent to 15 per cent. This move will offer the UK and Malaysia enhanced market access, promoting trade and investment, and creating new business opportunities.

This partnership will foster deeper collaboration between the two countries' supply chains, with rules of origin provisions benefiting businesses and offering more choices in sourcing intermediate goods. Malaysian firms and professionals will also gain greater access to temporary work opportunities in the UK.

The trade bloc will also open up both countries' government procurement markets to each other, ensuring equal competition with local suppliers. The agreement also introduces investment liberalisation, offering increased certainty for investors looking to establish businesses in either nation.

“We warmly welcome the UK into the CPTPP framework. As Malaysia’s first bilateral Free Trade Agreement with the UK, Malaysian exporters now have better access to the UK market, whose economy breached USD4 trillion in 2023. Malaysia’s CPTPP membership has certainly boosted our competitiveness, while fostering better integration of our exporters into the global supply chain.” YB Datuk Seri Utama Tengku Zafrul Aziz, Malaysia’s minister of investment, trade and industry said, at the launch event.

“The UK’s accession to the CPTPP marks a significant milestone in our trade relationship with Malaysia. By eliminating tariffs and streamlining trade processes, we are creating growth and a more prosperous future for both nations. It is time for businesses to prepare to take advantage of the of the agreement.” David Wallace, acting British high commissioner to Malaysia added.

ALCHEMPro News Desk (HU)

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