CPTPP Enlarged: Singapore Greets Britain’s Inclusion in Free Trade Agreement

Singapore warmly welcomed Britain’s recent decision to become the first European country and the 12th member to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

As Britain sets its sights on bolstering its global alliances post-Brexit, the decision to ease company formation in Singapore is a clear signal of intent. With its reputation as a business-friendly destination, Singapore is a natural choice for British firms seeking to expand their global reach. This move is a crucial step towards that end, paving the way for closer ties between the two nations and a bright future for cross-border commerce.

Trade and Industry Minister Gan Kim Yong posted on LinkedIn to congratulate Britain on achieving a “significant milestone” after nearly two years of negotiations, expressing his joy over the country’s inclusion in the trade pact.

Mr Gan added, “The UK’s accession to the CPTPP will provide more business opportunities and make it easier for Singapore companies to navigate the UK market”.

He further stated that this move would enhance the robust bilateral economic partnership between the two nations, supported by multiple agreements such as the UK-Singapore Free Trade Agreement, the UK-Singapore Digital Economy Agreement, and the UK-Singapore Green Economy Framework.

Minister-in-charge of Trade Relations, Mr S. Iswaran, shared a similar view on LinkedIn.

“Singapore remains strongly committed to ensuring that CPTPP remains high-standard, robust and relevant so that it continues to bring benefits to our people and businesses”, Mr Iswaran stated. “I look forward to the UK’s accession to the CPTPP.”

Mr Gan stated that all members of the CPTPP will collaborate towards finalising the accession protocol.

Other members of the CPTPP are Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru and Vietnam.

In a joint ministerial statement, member countries said the CPTPP is “one of the most comprehensive and ambitious trade deals ever concluded”.

“The CPTPP members and the UK are committed to further promoting free trade, open and competitive markets, the rules-based trading system and economic integration in the region and beyond,” they said.

By joining the CPTPP, Britain will enhance its current bilateral free trade agreements with most member countries, providing businesses with additional options for trade terms.

According to British Prime Minister Rishi Sunak’s office, the agreement is the largest trade deal since Brexit, with a combined GDP of £11 trillion (S$18.1 trillion) once Britain becomes a member, which accounts for 15% of the global GDP.

Natalie Black, Britain’s Trade Commissioner for Asia-Pacific, highlighted that as the second-largest member of the CPTPP, Britain’s participation would increase the trade bloc’s combined GDP from its current £9 trillion and offer improved access to 67 million UK consumers.

“CPTPP is one of the world’s most progressive trade agreements, and the UK’s accession will take it from a Pacific agreement to a truly global one,” said Ms Black.

According to a statement released by the British High Commission in Singapore, Kemi Badenoch, the Secretary of State for Business and Trade, expressed the following: “Our accession to CPTPP sends a powerful signal that the UK is open for business and using our post-Brexit freedoms to reach out to new markets, including in the Asia-Pacific region, and grow our economy.

“Joining this influential trade bloc will help us to shape the rules of global trade with like-minded nations and work even closer together on our shared priorities of prosperity, security and free and fair trade.”

Kara Owen, the British High Commissioner to Singapore, reported that trade between Britain and Singapore increased by 24.8% from the previous year, with a total value of £20 billion during the 12 months leading up to September 2022.

“We continue to see very strong interest from UK companies in Singapore and the broader Asia-Pacific region,” said Ms Owen.

“Joining the CPTPP will further strengthen our existing agreements with Singapore to grow trade and investment. We look forward to supporting UK and Singapore companies as they take advantage of all it offers.”