Kemi Badenoch has signed off UK membership to a major Indo-Pacific trade bloc.
The business and trade secretary signed the accession protocol to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand on Sunday.
The move brings British businesses a step closer to being able to sell to a market of half a billion people.
Britain is the first new member to join the bloc – comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – since its formation in 2018.
The UK is also the first European nation to gain entry.
It represents Britain’s biggest trade deal since Brexit, cutting tariffs for UK exporters to a group of nations which – with UK accession – will have a combined gross domestic product (GDP) of £12trn, accounting for 15% of global GDP, according to officials.
The signing is the formal confirmation of the agreement which was reached in March after two years of negotiations.
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Britain and the other 11 CPTPP members now begin work to ratify the deal, which in the UK will involve parliamentary scrutiny and legislation.
Officials believe it will come into force in the second half of 2024, at which point the UK becomes a voting member of the bloc and businesses can benefit from it.
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Image: Badenoch in Auckland
Before putting pen to paper in Auckland alongside ministers from CPTPP nations, Ms Badenoch said: “I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.
“We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”
To coincide with the signing, the government released figures showing that CPTPP-headquartered businesses employed one in every 100 UK workers in 2019, amounting to more than 400,000 jobs across the country.
Image: Kemi Badenoch with New Zealand MP Rino Tirikatene and Natalie Black, His Majesty’s Trade Commissioner Asia Pacific
While Britain already has trade agreements with the CPTPP members apart from Malaysia and Brunei, officials said it will deepen existing arrangements, with 99% of current UK goods exports to the bloc eligible for zero tariffs.
Dairy producers will gain export opportunities to Canada, Chile, Japan and Mexico, while beef, pork and poultry producers will get better access to Mexico’s market, according to officials.
But critics say the impact will be limited, with official estimates suggesting it will add just £1.8bn a year to the economy after 10 years, representing less than 1% of UK GDP.
Shadow foreign secretary David Lammy last month said the Tories were being “dishonest” by claiming CPTPP membership would make up for lost trade in Europe.
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Badenoch dismisses Brexit criticism
Officials herald the CPTPP as an alternative to the beleaguered World Trade Organisation in an increasingly fragmented international trading system.
HSBC chief executive Ian Stuart said: “The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology.”
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Some of the everyday items from CPTPP nations that will become cheaper for UK consumers thanks to the deal include Australian Ugg boots, kiwi fruits from New Zealand, blueberries from Chile and Canadian maple syrup, according to the Institute of Export and International Trade.
After the UK’s accession, attention may shift to other potential new members, with applications by China and Taiwan likely to cause tensions.
Kemi Badenoch will be appearing on the Sophy Ridge on Sunday programme on Sky News from 8.30am this morning.
A minister has defended Sir Keir Starmer’s decision to discipline rebellious MPs, saying they would have used “stronger” language against those who are “continually causing trouble”.
Home Office minister Jess Phillips told Sky News’ Matt Barbet that Labour MPs were elected “as a team under a banner and under a manifesto” and could “expect” to face disciplinary action if they did not vote with the government.
Image: Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell.
Pic: Uk Parliament
Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell all lost the whip, meaning they are no longer part of Labour’s parliamentary party and will sit as independent MPs.
Labour backbenchers lined up to criticise the move last night, arguing it was a “terrible look” that made “a Reform government much more likely”.
But speaking to Sky News, Ms Phillips said: “We were elected as a team under a banner and under a manifesto, and we have to seek to work together, and if you are acting in a manner that is to undermine the ability of the government to deliver those things, I don’t know what you expect.
“Now I speak out against things I do not like, both internally and sometimes externally, all the time.
“There is a manner of doing that, that is the right way to go about it. And sometimes you feel forced to rebel and vote against.”
Referring to a description of the rebels by an unnamed source in The Times, she said: “I didn’t call it persistent knob-headery, but that’s the way that it’s been termed by some.”
She said she would have described it as “something much more sweary” because “we are a team, and we have to act as a team in order to achieve something”.
More than 100 MPs had initially rebelled against the plan to cut personal independent payments (PIP). Ultimately, 47 voted against the bill’s third reading, after it was watered down significantly in the face of defeat.
Three other MPs – who also voted against the government – have had their trade envoy roles removed. They are Rosena Allin Khan, Bell Ribeiro-Addy and Mohammed Yasin.
However, it is understood this was not the only reason behind the decision to reprimand all seven MPs, with sources citing “repeated breaches of party discipline”.
Mr Hinchliff, the MP for North East Hertfordshire, proposed a series of amendments to the flagship planning and infrastructure bill criticising the government’s approach.
Mr Duncan-Jordan, the MP for Poole, led a rebellion against the cut to the winter fuel payments while Alloa and Grangemouth MP Mr Leishman has been critical of the government’s position on Gaza as well as the closing of an oil refinery in his constituency.
Ian Byrne, the Labour MP for Liverpool West Derby, wrote on X on Wednesday that the prime minister’s actions “don’t show strength” and were “damaging Labour’s support and risk rolling out the red carpet for Reform”.
Leeds East MP Richard Burgon added that “challenging policies that harm our communities” would “make a Reform government much more likely”.
Ian Lavery, Labour MP for Blyth and Ashington, warned the suspensions were “a terrible look”.
“Dissatisfaction with the direction the leadership is taking us isn’t confined to the fringes,” he wrote.
I’m going to level with you – I am very, very confused.
In fact, I’ve got five reasons why I’m very confused.
The first reason I’m confused is because this is meant to be a show of strength, but most people have literally never heard of these four individuals.
Rachael Maskell is a bit well-known, but if this is intended to impress the public, then I’m not sure the public will notice.
Secondly, if it’s about installing discipline in the parliamentary Labour Party, I’m confused about that. Surely Sir Keir Starmer‘s aim right now should be to unite the parliamentary Labour Party rather than divide it.
After the welfare rebellion, the promise was to listen. Starmer gave interviews saying he was going to create policy more sympathetic to his party.
It was only yesterday morning that Work and Pensions Secretary Liz Kendall said the government’s welfare reforms were in the “right place” – yet the people who helped get them there are suspended.
Suspended for agreeing with what is now government policy is an odd look.
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Sir Keir Starmer has suspended four MPs from the parliamentary Labour Party for ‘repeated breaches of discipline’.
Fourth, I’m confused at who the most prominent individual to be suspended is – Rachael Maskell.
She was on Sky News within minutes of the suspension looking genuinely surprised and really rather upset.
Now, there’s absolutely no doubt she was a ringleader in this rebellion. Eight days ago, she authored an article in the New Statesman discussing how to organise a government rebellion – so I think that’s pretty much case closed.
But Rachael is of the soft left, not the hard left. And who else is on the soft left? It’s Starmer.
It does feel as if the prime minister is slightly coming for people who have dangerously similar views to him.
I understand this is all about drawing hard lines and showing who’s on your team and who isn’t.
But some of that line looks like it goes awfully close to people that you really wouldn’t want to be on the wrong side of if you’re prime minister.
And finally, three other MPs – Rosena Allin-Khan, Bell Ribeiro-Addy and Mohammed Yasin – have been sacked from their trade envoy jobs. They do retain the party whip.
But here’s the thing that hurts your head: if you are a Lib Dem trade envoy, like Sarah Olney, or if you’re a Tory trade envoy, as George Freeman was until a couple of weeks ago when he was suspended, you do not have to obey the whip – and you can continue to keep your trade envoy role.
But if you’re in the Labour Party and you’re a trade envoy, you do have to obey the whip.
And it’s just one of those mad inconsistencies where if you’re in another party, you can keep your trade envoy role, if you’re in the governing party, you can’t. That just doesn’t make sense at all.
So there are my five reasons why I’m completely confused.