KUALA LUMPUR—Increased trade in natural rubber from Malaysia is among the benefits expected to result from the United Kingdom's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The free trade agreement will give the U.K. "significantly increased" market access to 11 CPTPP countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
At a special "countdown" event in Kuala Lumpur, the British high commission said trade between the U.K. and Malaysia totaled £5.7 billion (about $7.1 billion) in the 12 months to end of June 2024.
The CPTPP, it said, will enable local businesses to benefit from duty-free exports, further boosting established sectors like electrical and electronics as well as machinery and parts.
The U.K.'s membership, it added, will open new trade prospects for Malaysia's commodities, such as palm oil, natural rubber and timber, in the U.K. market.
In addition, CPTPP is expected to help deepen the two countries' participation in each other's supply chains and diversify trade.
"The rules of origin provisions could provide greater choice for our businesses when sourcing intermediate goods as well as increased opportunities for exporters," the commission stated.
The U.K.'s accession to CPTPP on Dec. 15 will give Malaysian firms and professionals greater certainty when looking to work in the U.K. to deliver services on a temporary basis, it added.
U.K. and Malaysian companies also will have "a guaranteed right to compete" for opportunities in each other's government procurement market on equal terms with local suppliers.
The deal also will provide "investment liberalization commitments," providing greater certainty to investors wanting to establish businesses in the U.K. or Malaysia.
