The UK has gone on to ratify an agreement so as to join a worldwide trade block, a move that, as per the government, can boost output in construction by £119 million a year.
With this, the UK is going to be the twelfth member of the Trans-Pacific Partnership’s (CPTPP), Comprehensive and Progressive Agreement, which has in it Japan, Australia, as well as Canada.
It is worth noting that the countries go on to represent almost 500 million consumers all put together.
This move can result in a boost of almost £119 million a year in terms of construction output in the long run, says the Department for Business Trade- DBT. Interestingly, the agreement is most likely to eradicate tariffs on UK exports to Malaysia in connection with all building materials and construction machinery such as bulldozers, forklifts, and diggers.
There will be tariffs too that will be eradicated soon as far as UK exports are concerned in terms of construction materials like bricks and tiles to Vietnam. In addition to this, the companies from the UK will also have access to the government procurement markets across Brunei and Malaysia. This deal is going to lead to a 3% surge in construction service exports, says the DBT.
Jason Millett, the deputy chief executive of Mace, has gone on to welcome this opportunity in order to export British construction skills across the world. As per him, as the trade group gets established, program managers, construction businesses, and British engineering will all be able to promote and expand the national expertise, while at the same time contributing towards the progress of other nations and also encouraging the uptake of global best practices.
He added that they are at present involved in a variety of projects across Peru, and the fact is that specific taxation changes over there will enable them to more efficiently deliver education, healthcare, and climate resilience programs across the country. Mott MacDonald, a consultancy that is working on multi-billion dollar schemes throughout Australia and Singapore, was apparently on the technical board thereby advising the British negotiators.
The executive board director from Mott MacDonald, Ian Galbraith, remarked that the partnership’s ambitious procurement as well as service chapters go on to pave the way for much better recognition in terms of professional competence within engineering as well as architecture and go on to establish an open, just, and, of course, transparent set of competition rules in terms of government procurement.
Notably, it was Kemi Badenoch, the business secretary, who inked the deal to join CPTPP in July 2023.
Interestingly, the Trade- CPTPP Act went on to receive assent in March 2024 and is most likely to come into effect in 2024.