UK Accedes to the CPTPP: Potential Impacts on Bilateral Investment Treaties – natlawreview.com

UK’s Accession to the CPTPP and Its Implications for Sustainable Development Goals

Introduction

In January 2026, following Mexico’s approval, the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) became binding on all parties except Canada. This development concludes a five-year negotiation process initiated by the UK’s signing of the accession protocol in July 2023.

Benefits of UK’s CPTPP Accession

While the UK already maintains bilateral investment treaties (BITs) with several CPTPP members, joining the CPTPP introduces significant advantages aligned with the Sustainable Development Goals (SDGs), including:

1. Establishment of tariff-free trade routes promoting economic growth and decent work (SDG 8).
2. Introduction of modern rules for digital commerce supporting industry innovation and infrastructure (SDG 9).
3. Provision of a framework to enhance supply-chain resilience, contributing to responsible consumption and production (SDG 12).

These benefits extend beyond the UK, influencing economic relationships and global trade dynamics among all CPTPP members, thereby fostering partnerships for the goals (SDG 17).

Interaction Between CPTPP and Existing Bilateral Investment Treaties

The UK’s existing BITs with CPTPP members remain effective due to their independence from other treaties. The CPTPP and BITs are expected to operate in parallel, allowing investors to select their preferred dispute settlement or investment protection mechanism. This dual framework supports peace, justice, and strong institutions (SDG 16) by providing robust legal protections.

Investment Chapter and Dispute Settlement

Chapter 9 of the CPTPP outlines rules and substantive protections for investor-state dispute settlement (ISDS), applicable to investments made before and after the agreement’s enforcement. The overlap between CPTPP protections and BITs may be managed by signatory states through one of the following approaches:

• Allowing both CPTPP and BIT regimes to operate concurrently.
• Reviewing and disapplying BITs to prevent duplication or conflicts with CPTPP provisions.
• Terminating or renegotiating BITs if CPTPP protections are deemed sufficient.

This flexibility enables adaptive governance, supporting sustainable economic development and institutional effectiveness (SDGs 8 and 16).

Implications for Investors

Given the evolving treaty landscape, investors are advised to:

• Assess their investment structures carefully.
• Monitor treaty adjustments closely.
• Make informed decisions to optimize treaty protections.

Such proactive measures contribute to sustainable economic growth and reduced inequalities (SDGs 8 and 10).

Conclusion

The UK’s accession to the CPTPP represents a strategic advancement in international trade cooperation, reinforcing commitments to multiple Sustainable Development Goals. By fostering tariff-free trade, modernizing digital commerce rules, and enhancing supply-chain resilience, the agreement supports inclusive and sustainable economic development across the Asia-Pacific region and beyond.

Special thanks to International Law Clerk Perla Salgado for contributing to this report.

1. Sustainable Development Goals (SDGs) Addressed or Connected to the Issues Highlighted in the Article

1. SDG 8: Decent Work and Economic Growth
   • The article discusses trade agreements and investment treaties that promote economic growth through tariff-free trade routes and investment protections.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Modern rules for digital commerce and supply-chain resilience mentioned in the article relate to building resilient infrastructure and fostering innovation.
3. SDG 17: Partnerships for the Goals
   • The CPTPP represents a multilateral partnership aimed at enhancing trade and investment cooperation among member countries.

2. Specific Targets Under Those SDGs Identified Based on the Article’s Content

1. SDG 8 Targets
   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances.
   • Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
2. SDG 9 Targets
   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure.
   • Target 9.5: Enhance scientific research, upgrade technological capabilities, and encourage innovation.
3. SDG 17 Targets
   • Target 17.10: Promote a universal, rules-based, open, non-discriminatory, and equitable multilateral trading system under the World Trade Organization.
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships.

3. Indicators Mentioned or Implied in the Article to Measure Progress Towards the Identified Targets

1. Indicators Related to SDG 8
   • Growth rate of real GDP per capita (implied by the focus on tariff-free trade and investment protections to stimulate economic growth).
   • Number of countries with investment treaties and trade agreements facilitating decent work and economic growth.
2. Indicators Related to SDG 9
   • Extent of digital commerce adoption and regulatory frameworks supporting it (implied by modern rules for digital commerce).
   • Measures of supply-chain resilience and infrastructure robustness.
3. Indicators Related to SDG 17
   • Number of countries participating in multilateral trade agreements like CPTPP.
   • Existence and enforcement of dispute settlement mechanisms (such as ISDS) to support international trade partnerships.

4. Table of SDGs, Targets, and Indicators

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