NPA welcomes opportunity for pork exports under CPTPP deal

The NPA has welcomed the news that the UK has struck a deal to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

 

The CPTPP is a free trade agreement bringing together 11 nations: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

 

Under the deal, more than 99% of UK goods exports to CPTPP countries will now be eligible for zero tariffs, including pork. 

 

The trade bloc is populated by around half a billion people with a joint gross domestic product (GDP) of £9 trillion in 2021. The combined GDP of the 11 CPTPP members and the UK was worth around £11 trillion in 2021. Last year, UK exports to these 11 nations was worth more than £60 billion and there will be significant opportunities to grow UK pigmeat export markets in countries such as Chile, Japan, Mexico and Vietnam, all of which ship in significant quantities of pork every year.

 

Of the CPTPP members, Canada is the only major pork exporter and the annual tariff rate quota under the deal is equivalent to around 7% of total UK imports. It remains to be seen if the Canadians view the UK market as a long term opportunity and this will become clearer once negotiations between the two nations on a bi-lateral trade deal resume in the coming months.

 

Negotiations to join the CPTPP, which began in June 2021, concluded after an intensive round of talks in Vietnam earlier this month, with representatives from all member countries agreeing to the UK’s accession.

The Government said the agreement protects the UK’s vital industries and entities, including agriculture, and upholds our high animal welfare and food safety standards

The highlights relating to pigmeat in the CPTPP deal are as follows:

• Brunei, Canada, Chile, Malaysia, Mexico, and Peru: Parties will share a single duty-free tariff rate quota (TRQ) whose volume will increase incrementally over 10 years, capped at a permanent quota of 55,000 tonnes from year 10.
• Most Favoured Nation (MFN) tariffs of up to 20% will be eliminated on UK exports of pork to Mexico immediately upon the UK’s accession.
• Singapore and Vietnam: Parties will share the same TRQ as above, before duties are eliminated from years 3 and 5 respectively, consistent with the bilateral FTAs. Tariffs will be eliminated sooner on some UK pork products exported to Vietnam.
• Japan and New Zealand: Duties will be eliminated at entry, consistent with the bilateral FTAs.
• Australia: Pork will remain subject to Most Favoured Nation (MFN) tariff rates, as agreed under our bilateral FTA.

 

Commenting on the deal, NPA chief executive, Lizzie Wilson, said: “The UK’s accession to the CPTPP provides a fantastic opportunity to export more UK pork, a market currently worth over £500m and vital for carcase balance.

 

"The deal offers huge potential to expand our trade with big pigmeat importers, such as Chile, Japan, Vietnam and Mexico."

 

“Canada’s ability to export huge volumes of pigmeat remains a potential threat to the UK market in the long term. The NPA will continue to monitor negotiations on a bi-lateral trade deal very closely to protect our farmers and consumers from pork produced to standards that wouldn’t be permitted in this country.”