The UK’s decision to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) could provide long-term benefits for dairy and red meat exports.
This is according to analysis from the Agriculture and Horticulture Development Board (AHDB), which launched its trade modelling work on the UK joining the CPTPP today (Monday, May 15).
The levy board for farmers cited population growth, economic development, and the expansion of middle-class consumers as the drivers for long-term opportunities for red meat and dairy products.
AHDB’s work, done in collaboration with Harper Adams University, revealed potentially expansive benefits in Asian and South American markets, driven by an increased demand for the products.
This follows on from research done by the board last month, which concluded that the CPTPP might help boost exports of UK pork to Mexico.
Opportunities through CPTPP
UK Prime Minister Rishi Sunak announced on March 31, that the UK would be joining the CPTPP after two years of negotiations.
The 11-member trade bloc will grant the UK access to the same tariff preferences as other CPTPP members.
Further opportunities through the CPTPP for UK red meat and dairy may also be presented by other countries like China, Taiwan, Ecuador, Costa Rica and Uruguay joining the trade partnership with the offering of preferential terms and either the lowering or removing of tariffs over time to other members, AHDB said.
AHDB trade and policy senior analyst, Jess Corsair, said: “The UK’s accession to the CPTPP is very much about playing the long game in terms of the potential benefits it will bring to UK exporters of red meat and dairy products.
“The expansion of the middle class in Asian and South American markets is likely to be a driver for these longer-term benefits for UK exports, reiterating the forecasts in our Prospects for UK agri-food exports analysis launched in January.
“Consequently, while we don’t anticipate any dramatic changes to trade overnight, the forecast increase in demand for pork and beef by 2031 in Japan, Vietnam, Mexico and Canada is encouraging.
“Similarly, opportunities for dairy with significant growth in Malaysia and Japan for butter and cheese, and for skimmed milk powder in Mexico will be areas that the UK can capitalise on.”
