The first day of September is already looking like an important one for international traders. Firstly, UK membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has received full ratification.
Secondly, the government has announced that the maximum fine for breaching export controls will double, as Westminster continues to keep up pressure on the Russian economy through its sanctions regime.
Thirdly, the Conservatives have a new shadow trade secretary, as opposition leader Kemi Badenoch reshuffles her frontbench team.
Full CPTPP ratification complete
UK businesses now have complete access to the CPTPP, as Canada becomes the final country to complete ratification of the UK’s membership.
Canada was the last nation outstanding when it came to final approval of UK membership. Following its ratification, full UK access to the bloc enters into force today (1 September), meaning that UK traders finally have access to the entire market – worth £10trn.
CPTPP is a trading bloc of 12 countries, including the UK, Canada, Australia, Chile, Peru and Japan. Expansion talks are ongoing with countries like the Philippines and the United Arab Emirates.
Trade minister Anas Sarwar said that full access to the agreement provides new opportunities “for British businesses across some of the world’s fastest-growing markets.”
“Whether it’s selling our world-class food and drink or winning public contracts, we will continue to back British business to succeed across the world, driving growth and creating jobs across the country.”
The UK formally joined the CPTPP on 15 December 2024 following years of negotiations, and each member needed to ratify the UK’s entry in order for traders to access the bloc’s benefits in each country.
The Department for Business, Innovation, Science and Trade (BIST) says that the agreement is due to provide around £2bn to the UK economy “in the long run” and highlights the 99% tariff reduction that comes with full membership of the CPTPP.
Sanction fine limit doubles
The maximum fine for the breach of export controls is set to double, as the UK’s chancellor attempts to “ramp up” pressure on Russia.
In an announcement today, the foreign office is doubling the maximum fine available to the Office for Financial Sanctions Implementation from 50% to 100% of the value of a sanctions breach.
The announcement is part of a broader statement by the government, as UK chancellor John Healey called on all nations to “step up” pressure on Russia and clamp down on sanctions evasion.
“The UK and our allies must step up our international cooperation to expose sanctions evasion, and disrupt the financial networks fuelling Russia’s aggression”, Healey said.
Additionally, the National Crime Agency (NCA) issued its first ever “nationwide alert” against an organisation known as ‘A7’. The NCA previously described A7 as a “billion-dollar money laundering network” that is active in the UK and facilitates sanctions evasion.
“Last year, our Operation Destabilise targeted and disrupted a major Russian-speaking professional money laundering network, making it harder for them to operate and degrading the threat they posed,” said Rachael Herbert, Director of the National Economic Crime Centre (NECC) at the NCA.
Healey made the initial announcement during a G20 meeting in North Carolina, his first international trip as chancellor. He also held meetings with IMF managing director Kristalina Georgieva and counterparts from the US, France, Germany and India.
New shadow trade minister
The UK leader of the opposition, Kemi Badenoch, has reshuffled her shadow front bench team.
Of note for traders is the promotion of shadow business and trade secretary, Andrew Griffith, to shadow chancellor, replacing Sir Mel Stride.
Claire Coutinho, who had previously held the energy brief, will take up the trade brief after her maternity leave, which is expected to end in early 2027. In the interim, Julia Lopez will serve as shadow trade secretary.
Coutinho, the East Surrey MP, is a former investment banker, having worked for Merrill Lynch and KPMG, before later founding a events company and going on to serve as a special adviser to Rishi Sunak. She was an ardent supporter of Brexit during the referendum and has also stood in for Badenoch at Prime Minister’s Questions on several occasions.
Other significant moves include the demotion of Dame Priti Patel to the backbenches, the promotion of Tom Tugendhat to the shadow foreign brief and the announcement that Sir James Cleverly will quit the Conservative frontbench to run for London Mayor.
Elsewhere in the headlines
· Eurozone inflation jumped to its highest in almost three years, raising the prospect of an interest rate increase by central banks
· UK prime minister Andy Burnham is expected to announce further cost-of-living measures in his first appearance at Prime Minister’s Questions later today
· The names of new storms have been announced by the Met Office, with Austen, Boelo and Chloe the first three set to feature
