APEC: United Kingdom reached a “key” agreement with Peru to join the CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) brings together 12 economies. With the inclusion of the United Kingdom, its members will jointly represent 15% of world GDP.

The Government of the United Kingdom reported that they have completed, “earlier than expected,” the key step to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement of which Peru is a party with 11 other economies. Within the framework of the Asia-Pacific Economic Cooperation Forum (APEC), which is being held this year in our country, the United Kingdom indicated that they have reached a vital agreement with Peru for its entry into the CPTPP.

Specifically, both countries reached a double taxation agreement (DTA) that will prevent companies from paying two taxes and significantly reduce the costs of doing business with Peru, supporting bilateral trade and investment.

The British Trade Policy Minister, Greg Hands, is today in Arequipa, where the APEC ministerial summit is taking place. It was in this context that the United Kingdom official reported that the closure of the DTA with Peru also comes ahead of time.

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“I am delighted to have been able to bring forward our original July forecast, so that we can begin the countdown to entry into force as soon as possible,” he said.

Hands also assured that his country intends to be an influential member of the CPTPP, making his voice heard on all key issues, and is already involved in meetings and discussions with CPTPP member countries on the future of the agreement.

Separately, he highlighted that Peru, a member of the bloc since 2017, is a long-standing trading partner for the United Kingdom, with bilateral trade valued at US$2,285 million last year.

The British official also assured that, with the inclusion of the United Kingdom, the economies that make up the CPTPP will together represent 15% of world GDP.

The United Kingdom recalled that, in July 2023, the Secretary for Business and Trade, Kemi Badenoch, signed the agreement to join the CPTPP. Now, they need six more member economies to ratify the agreement before October, for it to come into force before the end of 2024. Singapore, Japan and Chile have already done so, to which Peru joins.

Source: Newspaper El Comercio