Friday 31 March 2023
The Bailiwick of Guernsey will participate in the free trade agreement known as the CPTPP from the date that the UK joins it.
The whole Bailiwick will be included in the CPTPP for trade in goods from the outset and Guernsey has a clear pathway and mechanism, contained within the legal text, to be included for trade in services and investment. This meets the objectives decided upon by each of the parliaments of the Bailiwick in late 2021 and is a position supported by industries as represented by Guernsey's Trade Policy Forum.
The UK Government has announced today (31st March)[1] that it has reached an agreement in principle on the Accession of the United Kingdom to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The agreement with the CPTPP partners also includes the interests of the Bailiwick of Guernsey, Bailiwick of Jersey, and the Isle of Man.
The CPTPP is a trading bloc consisting of Australia, New Zealand, Japan, Brunei, Malaysia, Chile, Canada, Mexico, Peru, Singapore, and Vietnam which came into force in 2018 and represents 13% of global trade. The UK is set to be the first country to join the agreement since its implementation. The Bailiwick's participation in the CPTPP will start once the UK's accession comes into effect.
The participation of the Bailiwick in the CPTPP ensures local businesses will be able to benefit from the preferential market access and lower tariffs that the eleven CPTPP countries will offer for the trade in goods, and soon for services and investment too.
Deputy Jonathan Le Tocq, lead for External Relations, Policy & Resources Committee said:
"Today's announcement by the UK Government about its agreement in principle to join the CPTPP is welcomed by Guernsey's government as the agreement includes the interests of the Bailiwick - and the other Crown Dependencies. It has been the result of a considerable amount of hard work and close collaboration between the UK's Department for Business and Trade (and its predecessor), Guernsey's government and those of the Isle of Man and Jersey.
Guernsey's government is continuing to develop bilateral engagement in London with international partners, alongside the formal negotiations, to ensure our interests and the nuances of the Bailiwick are understood. That has enabled Deputy Moakes and I to discuss and emphasise the importance of inclusion within the CPTPP agreement for Guernsey's economy.
I thank Guernsey's officers who have worked tenaciously behind the scenes to ensure that the Bailiwick's interests are included in the CPTPP and who will continue to work towards implementation as the UK's accession comes into effect."
Deputy Nick Moakes, member of the Committee for Economic Development and political lead for Financial Services, said:
"Since the UK's withdrawal from the EU, the Bailiwick has become increasingly internationally facing and it is essential to ensure that the islands continue to be well placed and globally recognised alongside the UK, Jersey and the Isle of Man as adhering to international standards within a highly competitive and sometimes fractious global trading environment.
The Bailiwick's inclusion within this agreement is important, particularly for participation for services and investment in the future, as it provides market access protection and preferential treatment to facilitate trade and investment on a reciprocal basis.
This is important as businesses are increasingly referring to such agreements as part of their governance before trade and investment decisions.
The CPTPP allows Guernsey-based businesses to increase existing business and establish new business with confidence across the CPTPP countries. Together with Guernsey Finance, the Committee for Economic Development intends to continue to promote Guernsey within these new markets to ensure we can maximise the benefits of this agreement."
[1] Conclusion of Negotiations on the Accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Trans-Pacific Partnership - GOV.UK (www.gov.uk)
