KUALA LUMPUR: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will offer significantly increased market access to the economies of Malaysia and the United Kingdom (UK), said the British High Commission today.

It said Malaysia is one of the only CPTPP members which the UK does not currently have a bilateral agreement with, and the potential increased trade between both countries, supported by the removal of barriers to trade could support further growth, and contribute to the prosperity of both countries.

In 2022, Malaysia accounted for GBP5.6 billion (GBP1=RM5.93) worth of UK trade in 2022, while total UK exports to Malaysia amounted to GBP3.1 billion (in current prices) in 2022, while the UK's imports from Malaysia amounted to GBP2.5 billion (in current prices) last year.

"It was agreed in November 2022 to elevate bilateral discussion to a ministerial led Joint Economic Trade Committee to promote and enhance trade, investment and economic cooperation linkages. We look forward to the first meeting later this year," said the British High Commission in a statement today.

It added that the UK joining CPTPP could provide significantly better market access to the UK market for Malaysian businesses as the UK is the sixth largest country in the world by gross domestic product and is home to over 68 million consumers.

"The UK is also the fifth largest source of outward Forward Direct Investment stocks. Malaysia exported around GBP2.5 billion worth of goods and services to the UK in 2022, businesses and consumers could benefit from preferential tariffs that CPTPP members offer each other," it said.

The British High Commission said the UK's accession to the CPTPP would also result in the elimination of tariffs on Malaysia's exports of all industrial products to the UK, including products like vacuum cleaners.

The UK has formally signed the treaty to accede to CPTPP trade bloc in New Zealand on Sunday, kickstarting the country's membership of a trade deal spanning 12 economies across Asia, the Pacific, and now Europe.

The signing comes as a new government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country.

"Signing CPTPP means we will have a free trade agreement with Malaysia for the first time. This is a historic milestone for the UK and Malaysia as we strengthen the foundation for our bilateral trade and investment relations," said British High Commissioner to Malaysia, Charles Hay.

He noted that the trade deal would enable both countries to enjoy tariff-free goods, give consumers more options, leverage diverse supply chains, create jobs, and support foreign direct investments.

"We look forward to working closely with Malaysia for our two nations to reap the benefits of our CPTPP membership," noted Hay.

-- BERNAMA