United Kingdom (Commonwealth Union)_ Following the UK Government’s decision to join the CPTPP Asia-Pacific trade bloc in July, drinks exporters are toasting success in the region with sparkling wine exports to Japan up 140%.
In July 2023, the United Kingdom formally agreed to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an Asia-Pacific trade bloc made up of 11 other countries : Canada, Australia, Brunei Darussalam, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The Government has said the agreement will offer lower trade barriers to a region “expected to become increasingly significant in the global economy” as the first new member since the bloc was established in 2018, and the first European member.
In 2022, the UK exported £61.3 billion of goods and services to the CPTPP countries (7.5% of the UK total) and imported £52.1 billion (5.8%).
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Drink up
Huge opportunities are offered from an F&B standpoint, CPTPP countries, especially from those in Asia. According to Statista data, wine in Asia is expected to grow annually by 5.19% to 2027.
In 2023, UK sparkling wine exports to Japan increased by 140% to over £26 million.
And wine producers are not the only ones benefitting. Latest figures show luxury British staples such as Scotch whisky and chocolate are being ordered en masse by CPTPP countries including Singapore, Japan, Mexico and Malaysia.
Scotch whisky exports to Malaysia have increased by 43% (£11 million).
Although the United Kingdom already has bilateral trade agreements with 9 CPTPP members, it does not have agreements with Malaysia or Brunei Darussalam.
Under CPTPP, which the UK is set to formally join next year, tariffs on 99% of United Kingdom goods exports such as chocolate to Mexico and Malaysia will be 0%, helping drive exports even further.
Singapore has been a stand out success for several UK exporters in 2023. Over the past year, UK chocolate exports to Singapore have increased by 220% in current prices to over £26 million.
Scotch whisky also continues to dominate the Singapore market, with more than £380 million worth of Scotch exported from the UK to Singapore over the last year, an increase of 31% (£90 million) in current prices on the previous year. Singapore is also a big market for the UK gin industry, with enthusiasm for gin and tonics and the Singapore Sling driving a 56% (£3 million) increase in current prices in UK gin exports to the country.
