UK: Pacific trade pact overshadowed by domestic pressures, says WSTA

Published Mar 31, 2023

Tridge summary

The UK has signed up to the Asia-Pacific trade pact, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will open new markets for the drinks trade but is not expected to have a significant impact on the economy in the short term. However, the Wine & Spirit Trade Association (WSTA) has expressed concern that the domestic situation, including the largest tax increase on spirits since 1981 and wine since 1975, will mean that many businesses will not be able to benefit from the CPTPP in the future. The new alcohol duty regime, which will be enforced from 1 August, is predicted to lead to a price rise for some 90% of wine sold in the UK, nullifying the benefits of new FTAs such as one with Australia.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Confirmation that the UK has signed up to the Asia-Pacific trade pact will open new markets down the line for some in the drinks trade, but will offer little sustenance in the short term. Yesterday’s announcement (30 March) that the UK will join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), covering 11 Asia and Pacific nations, is designed to ease barriers to trade between the nations concerned. However, with the government’s own estimate that joining this combined market of around 500 million people will add just 0.08% in terms of a boost to the British economy, the Wine & Spirit Trade Association (WSTA) was quick to turn the focus back to the plight of many in the UK drinks trade. • Read more: Budget misery for UK drinks trade “It’s positive that the UK is joining CPTPP and opening up more and better trading opportunities with some of the fastest growing economies in the world. There are some important markets among them – for both imports ...

Source: Harpers