CPTPP: What the UK's Pacific Trade Deal Means for Your Import Costs

What is CPTPP?

CPTPP is a free trade agreement between 12 countries across the Asia-Pacific region. The current members are: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam — and the UK, which acceded in December 2024.

The deal progressively eliminates or reduces import duties on goods traded between member countries. For the UK, this means importers sourcing from these countries may pay less duty than the standard UK Global Tariff (the MFN rate that applies to countries with no trade deal).

Which countries are covered?

Note: The UK already has separate bilateral trade agreements with Australia and New Zealand. CPTPP membership adds a second route to preferential rates with those countries, but in practice importers will usually use the existing bilateral deals which have already been in force longer.

What duty rates does CPTPP unlock?

The duty reductions are product-specific and phased in over time. Some goods see immediate zero duty from day one of UK accession; others see gradual annual reductions across 5–12 years. A few sensitive sectors (certain agricultural goods, for instance) are excluded entirely.

Examples of product categories with meaningful CPTPP reductions:

• Clothing and textiles from Vietnam — previously 12% MFN duty; reducing towards 0% over the phase-in period
• Footwear from Vietnam and Malaysia — previously up to 17% MFN; phased reductions to 0%
• Electronics from Malaysia and Japan — many already 0% under MFN; some components and machinery now cheaper
• Automotive parts from Japan and Canada — significant reductions on specific tariff lines
• Processed food from several members — varies widely by commodity code

How do rules of origin work under CPTPP?

This is where many importers trip up. A preferential duty rate only applies if the goods genuinely originate in the CPTPP country you're importing from. Origin is not simply where the goods were shipped from — it's where they were substantially produced or transformed.

What "originating" means

Goods are considered to originate in a CPTPP country if they are either:

• Wholly obtained — grown, mined or otherwise produced entirely in that country with no non-originating content
• Sufficiently processed — manufactured using non-originating materials, but processed enough to meet the product-specific rules in the CPTPP annexes

For manufactured goods, "sufficient processing" is defined product-by-product. It might require a change in tariff classification at heading or chapter level, or a regional value content threshold (e.g. at least 40% of the value must originate in CPTPP countries).

The "China problem" for Vietnam-sourced goods

Many goods manufactured in Vietnam use Chinese materials and components — which are not CPTPP-originating. If Chinese inputs are used and the transformation isn't sufficient to "change" the origin under the product-specific rules, the goods won't qualify for CPTPP preference.

For clothing, for example, CPTPP uses a "yarn-forward" rule for some categories — meaning fabric must be woven in a CPTPP country from CPTPP-spun yarn. Garments sewn in Vietnam from Chinese fabric may not qualify. This is a critical check before you claim the preferential rate.

How to claim CPTPP preference

To apply the preferential duty rate on your import declaration, you need proof that the goods meet the rules of origin. Under CPTPP, this can be:

• A self-certification by the exporter — a statement on the commercial invoice or a separate origin declaration, signed by the exporter in the CPTPP country
• A self-certification by the importer — for importers who have sufficient knowledge of the product's supply chain to certify origin themselves

The statement must include the exporter's or importer's reference number, the origin criteria being claimed, and a declaration that the goods meet the CPTPP rules of origin.

CPTPP vs existing UK trade agreements

The UK already has bilateral free trade agreements with many CPTPP members — Japan (UK-Japan CEPA), Singapore (UK-Singapore FTA), Australia, and New Zealand. Where a bilateral deal exists, importers can choose which agreement to use to claim preference. In practice:

• If the bilateral deal has more favourable rates, use that
• If CPTPP has more favourable rates (or easier origin rules), use CPTPP
• You cannot combine both deals on the same shipment

For importers sourcing from Vietnam, Malaysia, Mexico, Peru and Chile, CPTPP is the only preferential route available (the UK has no bilateral deals with these countries beyond what CPTPP provides).

What action should importers take now?

1. Review your sourcing countries. If you're importing from Vietnam, Malaysia, Mexico, Peru or Chile, check whether your specific products now attract a lower rate under CPTPP.
2. Check your commodity codes. The savings are code-specific. Use the UK Trade Tariff or LandedHQ to look up whether your tariff line has a CPTPP preference rate.
3. Verify rules of origin with your supplier. Ask them to confirm origin eligibility and to provide the appropriate origin declaration on invoices.
4. Update your customs declarations. When making import declarations through the Customs Declaration Service, enter the correct preference code and attach evidence of origin.
5. Consider whether CPTPP changes your sourcing strategy. If you're currently sourcing from a non-CPTPP country at full MFN rates, and a CPTPP member can offer comparable quality and price, the duty saving may tip the balance.

Frequently asked questions

Does CPTPP apply to services or just goods?

CPTPP covers goods, services, investment and digital trade. For most importers, the goods chapters — covering tariff reductions and rules of origin — are the most immediately relevant.

What happens to CPTPP rates if I mix materials from multiple countries?

CPTPP allows for cumulation — meaning materials from any CPTPP member country can count as "originating" when assessing whether your product meets the rules. So Vietnamese fabric made from Malaysian yarn could count as CPTPP-originating, even though two countries are involved. Non-CPTPP materials (e.g. Chinese components) still don't count.

Where can I find the full CPTPP tariff schedule?

The UK Government publishes the CPTPP tariff schedule on GOV.UK. You can also use the HMRC Trade Tariff online tool — filter by country and look for CPTPP preference codes — or use LandedHQ which incorporates preferential rates into its calculations.