Guidance

The UK's accession to CPTPP for SMEs

Published 15 December 2024

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This publication is available at https://www.gov.uk/government/publications/the-uks-accession-to-cptpp-for-small-and-medium-sized-enterprises-smes/the-uks-accession-to-cptpp-for-smes

1. Supporting small and medium-sized enterprises (SMEs)

The UK’s SME landscape comprises a variety of sectors and makes up 99.8% of the business population (5.5 million businesses as of 2024). SMEs also employ 16.6 million people. Despite the fact that SMEs are often thriving businesses, expanding into new foreign markets can be challenging. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) recognises the importance of SMEs in the creation of high-quality jobs and in inclusive economic growth. This Agreement contains a dedicated SME chapter to enable SMEs to better participate in international trade and regional supply chains by reducing barriers to trade.

2. CPTPP Member Countries

The UK is now able to trade with the following countries under CPTPP:

  • Brunei
  • Chile
  • Japan
  • Malaysia
  • New Zealand
  • Peru
  • Singapore
  • Vietnam

These Parties have already ratified the UK’s accession to CPTPP.

From 24 December 2024, the UK will also be able to trade with Australia under CPTPP.

Canada and Mexico have not yet ratified the UK’s accession to CPTPP; therefore, UK businesses will not be able to trade under CPTPP with these Parties until they do so.

When a CPTPP Party ratifies the UK’s accession to CPTPP, the agreement will be ready to be applied with that Party 60 days later. This trading bloc accounts for almost 15% of global gross domestic product (GDP). This treaty incorporates, by reference, the provisions of the original Trans-Pacific Partnership (TPP) signed on 4 February 2016 in Auckland, New Zealand, with certain provisions suspended.

This page will be updated when each Party ratifies the UK’s accession.

3. CPTPP text

The CPTPP text, which sets out the incorporations and suspensions, is hosted on New Zealand’s website.

As CPTPP depository, New Zealand maintains all the authentic text of legal documents relating to the CPTPP.

4. CPTPP provisions relevant to SMEs

As part of the information-sharing commitments set out in CPTPP, the UK is required to signpost a description of the provisions in CPTPP that are relevant to SMEs.

4.1 Preamble 

The CPTPP Parties support the growth and development of SMEs by enhancing their ability to participate in and benefit from the opportunities created by this Agreement. 

4.2 Customs administration and trade facilitation 

Article 5.7: Express shipments 

This article states that there are specific rules relating to expedited customs procedures for express shipments, which will ensure that customs duties will not be assessed on express shipments valued at or below the amount set out under the Party’s law. The Parties are committed to reviewing the amount periodically, considering factors such as the impact on SMEs.

4.3 E-commerce 

Article 14.15: Co-operation 

Recognising the global nature of electronic commerce, this provision encourages countries to work together to assist  SMEs to overcome obstacles to its use.

4.4 Government procurement  

Article 15.21: Facilitation of participation by SMEs

This encourages the participation of SMEs in government procurement. It ensures that any measure providing preferential treatment for SMEs is transparent and facilitates SME participation in covered procurement, by:

  • providing comprehensive procurement-related information that includes a definition of SMEs in a single electronic portal

  • endeavouring to make all tender documentation available free of charge

  • facilitating procurement by electronic means or through other new information and communication technologies

  • considering the size, design and structure of the procurement, including the use of subcontracting by SMEs

Article 15.22: Co-operation

This encourages the participation of SMEs as suppliers in government procurement.

Article 15.23: Committee on government procurement

This establishes a committee on government procurement, composed of government representatives of each country. They can meet to discuss cooperation matters or the participation of SMEs in procurement.

4.5 Intellectual property (IP) 

Article 18.13: Co-operation activities and initiatives 

This includes a commitment for the Parties to co-operate on IP matters relevant to SMEs.

4.6 Labour

Article 19.10: Co-operation 

This includes cooperation in improving business and labour productivity, particularly in respect of SMEs.

4.7 Co-operation and capacity building  

Article 21.1: General provisions 

This article acknowledges the importance of co-operation and capacity-building activities between CPTPP Parties in implementing the Agreement and accelerating economic growth and development. It recognises that these activities may be undertaken between 2 or more of the CPTPP Parties and should build on existing agreements or arrangements between them. It recognises that the private sector will be important in these activities, and that SMEs may need help to participate in global markets.

4.8 Competitiveness and business facilitation  

Article 22.2: Committee on competitiveness and business facilitation

The Committee will provide advice and recommendations to the CPTPP Commission on how to enhance the competitiveness of the Parties’ economies, including recommendations on how to enhance the participation of SMEs in regional supply chains.

Article 22.3: Supply chains

The Committee will make recommendations and promote capacity-building activities to assist SMEs’ participation in supply chains in the area covered by CPTPP.

4.9 Development 

Article 23.3: Broad-based economic growth

In this article, the Parties recognise the role that broad-based economic growth plays in poverty reduction and enabling people to live healthy and productive lives. The article provides Parties with potential actions to deliver sustainable development and the reduction of poverty, such as the promotion of market-based approaches to improve trading conditions for vulnerable groups and SMEs.

Article 23.6: Joint development activities

This article facilitates joint activities between the Parties’ governments, and private and multilateral institutions, to progress each Party’s development goals. This could include public-private partnerships to engender SME participation in their development objectives.

4.10 SMEs 

Article 24.1: Information sharing

The Parties committed to providing SME-relevant information online.

Article 24.2: Committee on SMEs

The Parties committed to establishing a Committee on SMEs to cooperate on SMEs, ensuring that they take advantages of the commercial opportunities under CPTPP.  

4.11 Regulatory coherence 

Article 25.5: Implementation of core good regulatory practices 

The Parties may take into consideration the potential impact of proposed regulation on SMEs when conducting regulatory impact assessments.

Article 25.7: Co-operation 

The Parties will co-operate to maximise the benefits arising from the chapter. This may include information exchanges, dialogues or meetings with SMEs.

4.12 Transparency and anti-corruption 

Article 26.10: Participation of private sector and society 

The Parties will take appropriate measures to prevent and combat bribery and corruption in relation to international trade and investment and raise awareness of the threat posed by corruption. This could include adopting or maintaining measures to encourage SMEs in developing ethics and compliance programmes or measures for preventing and combatting bribery and corruption.

5. Business guidance

6. Access to information

CPTPP countries must provide information online that assists SMEs with information that they deem useful for trading, investing or doing business such as tax information, business registration procedures, regulations concerning customs, intellectual property settings, investment, and employment law.

CPTPP country websites with content aimed specifically for SMEs include:

CPTPP websites are also maintained by:

Helpful links for businesses include:

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