Six more countries need to ratify by the end of October to bring the deal into force by the end of the year.
David Hooper runs Nuneaton-based international trade consultancy Hooper & Co after chalking up 25 years in the industry.
He said the new deal could lead to firms having increased trade ties with Malaysia as the UK has existing deals in place with nine out of 11 countries that form the CPTPP, which also includes Australia, Brunei, Canada, Chile, Japan, Mexico, New Zealand, Peru, Singapore and Vietnam.
David said: “This is the first agreement we will enter into post-Brexit where there is an existing partnership in place and we don’t have to start fresh negotiations.
“It’s definitely worth noting, however, that the UK has existing deals with nine of the countries already.
“The one to watch, in my opinion, is Malaysia. This is a market that has been growing and developing over many years and the UK doesn’t have a direct trade deal with it. Being part of CPTPP will cut through that.
“It could be really beneficial for a number of manufacturers who can benefit from cumulating materials from participating countries in order to qualify under the rules of origin.”
Hooper & Co, which is the sister company to freight forwarding specialist Independent Freight Solutions, offers training and guidance to businesses of all sizes and sectors.
David added that the wider agreement would bring the UK closer to a market that accounts for 13 per cent of UK GDP – but that its benefits should be put into context.
He said: “The short-term gains are going to marginal but you cannot underestimate the size of the market and the agreement will enable over 99 per cent of UK exports to be tariff free.
“However, because of those existing deals we have with individual countries, this will result in little change.
“And, when you look at the bigger picture, the CPTTP accounted for eight per cent of UK exports in 2019, which is less than what was sold to Germany!
“So, while taking a step closer to being part of CPTTP is welcome, I’d be surprised if we saw a huge leap in exports to those countries. Malaysia could be the big chance – as well as other countries looking to join at some point – and I’d urge businesses that are looking to start trading there to seek advice and support.”
Visit www.hooperandco.com/contact for more information on how to find support and advice for your business.
