UK Says No Trade Pact Talks Yet with ASEAN, Focus on CPTPP

The British government has not entered into any official talks for a possible free trade agreement with ASEAN, as London wishes to use the tariff eliminations provided by the Trans-Pacific accord, CPTPP, when doing business in the region.

“The UK has become a CPTPP member, and that is going to be the main focus of our free trade agreement for this region. We are not currently in an active dialogue with ASEAN for a UK-ASEAN free trade agreement,” UK Ambassador to ASEAN Helen Fazey told reporters in Jakarta on Friday.

At the trade front, Fazey admitted that her country would focus more on the CPTPP, which also comprises ASEAN members Malaysia, Singapore, Brunei Darussalam, and Vietnam.

“We are pleased that there are a number of ASEAN member states that are part of the CPTPP," she said.

The CPTPP is short for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Indonesia has already applied for membership to the pact that makes up around 15 percent of the global economy. The UK is the CPTPP’s newest member, having only secured a seat about a year ago.

In a world hit by US tariff hikes, the CPTPP promises duty-free treatment across 99 percent of the tariff lines among its members once fully implemented. Aside from the UK and the four aforementioned ASEAN economies, the CPTPP brings together Australia, Canada, Chile, Japan, Mexico, New Zealand, and Peru. Indonesia officially sent its application letter in September 2024. Southeast Asia’s biggest economy is also banking on this Trans-Pacific group as its gateway to Latin American markets.

Indonesia reported that it had brought in $786.7 million worth of British imports between January and September. Bilateral trade almost reached $2 billion in the said nine-month period. Jakarta enjoyed a $396.2 million surplus, although the positive trade balance had dropped compared to the $711 million recorded in January-September of last year. ASEAN's preliminary statistics showed that the group’s two-way merchandise trade with the UK reached nearly $39 billion in 2024.

Earlier this week, ASEAN and the CPTPP held their inaugural dialogue during which the two clubs called for a “free and fair” multilateral trading system with the World Trade Organization (WTO) at its core. They agreed to support the reforms at the crisis-ridden international trade court, which has long been unable to review appeals after the US prevented the organization from appointing new judges.

Source: Jakarta Globe