Following Peru's ratification, UK to join CPTPP by 15 December

By Espinosa Bellido Abogados

The United Kingdom has secured the sixth and final ratification required to trigger its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) before the end of this year.  

Following Peru's ratification of UK's deal to join the bloc, the agreement will now officially enter into force by 15 December 2024. 

Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will come into force with those members by 15 December, and subsequently with other members as they ratify.

CPTPP is a free trade area spanning five continents and almost 600 million people once the UK joins. 

Under the CPTPP, the United Kingdom will immediately eliminate tariffs on 94% of products exported from Peru. This has resulted in additional benefits beyond those established in the bilateral agreement for the following products: starches and flours, lactose, fructose, orange juice, poultry meat and edible offal, condensed milk, yogurt, butter, cheeses, garlic, mushrooms, corn, rice, cocoa powder with added sugar, artichokes, and fresh or frozen oranges and mandarins.

The agreement also expands opportunities for bilateral trade in services by creating more avenues for Peruvian and British companies to export their services in sectors such as architecture, engineering, financial services, construction, IT and software services, business consulting, tourism, call centers, distribution, and franchises. Additionally, it provides facilities for the movement of Peruvian business people seeking to enter the United Kingdom, or vice versa.

Besides UK's accession to the CPTPP, Peru and the UK also reached this month a bilateral agreement regarding Double Taxation (DA), which will prevent businesses from being taxed twice and will significantly reduce the costs of UK's companies doing business with Peru, supporting bilateral trade and investment.

"Reducing costs and providing certainty, it is a major win for businesses in both countries and will provide opportunities for substantial increases in bilateral trade and investment," the Ministries of Foreign Affairs of both countries stated in a press release.