11 Jul 2025
by Arnoul d’ARSCHOT

CPTPP: A New Path for UK SMEs

Small and medium-sized enterprises (SMEs) make-up 99.8% of the UK’s business population, totalling over 5.5 million companies as of 2024 (Department for Business and Trade). As the UK transitions from its post-Brexit trade identity and integrates into new global frameworks—most notably through its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)— SMEs are presented with significant new opportunities for international expansion.

At the heart of this shift lies a need for clear strategy, trusted guidance, and local expertise. As an international advisory firm operating in 24 countries, Altios Group provides a 360-degree approach to global growth while navigating evolving trade dynamics. In partnership with TechUK and as part of the Department of Business and Trade’s (DBT) overseas referral network, we help SMEs - and the government agencies that support them - translate new trade developments into actionable, long-term success.

This article explores the CPTPP through an expert lens: its implications for trade, regulatory challenges, sector-specific opportunities, and how to leverage government support effectively. We also highlight how Altios supports SMEs in transforming uncertainty into opportunity, delivering a holistic approach to international expansion.

Rethinking Trade – Why SMEs are looking beyond Europe

The European market has long served as a primary export destination for UK firms. However, the post-Brexit landscape has introduced significant complexity, including diverging regulatory frameworks, shifting compliance standards, and new non-tariff barriers. These issues have made the EU a more consolidated and less predictable partner. UK exporters often find themselves out of sync with new packaging, certification, and product conformity rules, creating friction and delays across sectors.

In response, many UK businesses are reassessing their exposure and growth strategies. Attention is shifting to more dynamic and stable economies with clearer regulatory environments and stronger trade incentives. The CPTPP plays a pivotal role in this shift, offering a compelling alternative.

The CPTPP encompasses 11 nations, including Singapore, Vietnam, Australia, Canada, and Japan, accounting for 14% of global GDP and over 500 million consumers (World Economic Forum). The agreement offers UK businesses improved market access through reduced tariffs, flexible rules of origin, and sector-specific provisions.

Markets like Singapore and Australia provide stable legal systems and transparent trade environments, while Vietnam presents cost-effective manufacturing and sourcing opportunities. Recent trade deals have also reduced import duties on essential raw materials and finished goods, thereby lowering operational costs, improving margins, and enabling access to new customer segments.  For example, reduced tariffs on electronic components or agri-food inputs can unlock new B2B and retail distribution channels.

For UK SMEs, the CPTPP is not just an alternative to the EU, it represents a strategic rebalancing of trade portfolios toward long-term, high-growth markets, including the US, India, and the Asia-Pacific region.

Building Resilience – Regulatory Complexity and Sector-Specific Strategy

The regulatory landscape and supply chain management can significantly shape business outcomes, with implications that vary by sector and partner country. While Free Trade Agreements (FTAs) offer streamlined customs procedures, UK firms must conduct thorough due diligence—particularly around rules of origin, labour laws, and environmental standards—which may require changes to suppliers or manufacturing locations.

Moreover, regulatory divergence adds to the complexity. EU product certifications, for example, are no longer universally recognised, often requiring dual testing or new registrations. Meanwhile, countries like the US and those across Asia enforce a distinct labelling, safety, and data protection rules.  To maintain a competitive edge, UK businesses must invest in compliance and local partnerships. Differentiation will come through value-added offerings, sustainability credentials, and heritage branding.

Market Access – Tariffs, Trade Deals and Treaty Shopping

Trade deals with India, Australia, and CPTPP members offer significant advantages, such as tariff reductions and simplified entry procedures—particularly for automotive, food and drink, and professional services sectors.

Faced with ongoing diversions regarding market access, many UK SMEs are rethinking long-term strategy by establishing operations in countries like Singapore, India, or US, to benefit from more favourable trade terms. This approach—often referred to as ‘treaty shopping’—enhances compliance, speeds up market entry, and streamlines logistics. Strategic planning by sector enhances this further: Singapore as a regional hub for Asia-Pacific, India for manufacturing and supply chains, and the US as a launchpad for North American markets, including Canada and Mexico.

Talent Mobility

When considering expansion into foreign markets, a critical opportunity lies in youth mobility agreements. Youth mobility agreements are helping firms access talent in tight labour markets. Initiatives like the UK/EU Youth Experience Scheme strengthen bilateral cooperation and expand talent pools. However, long-term success isn’t just about market access—it’s about building sustainable, compliant business models. At Altios, we provide this operational on-the- ground support for clients by setting up subsidiaries, hiring local staff, or exploring M&A—tailored to their sector, scale, and growth ambitions.

Government Support: Turning Complexity into Opportunity

Accessing government support can help mitigate these challenges, but it’s not always straightforward. While initiatives from UK Export Finance (UKEF) and other government schemes are expanding, many SMEs struggle to navigate eligibility, processes, or identifying local contacts. We often hear the same concern: We don’t know where to start.

This is where Altios adds value. Embedded within international trade ecosystems, we know the stakeholders, understand the processes, and can align expansion plans with available government incentives. Our experts also emphasise the importance of compliance investment and local partnerships, to reduce risk and ensure long-term resilience.

How Altios and TechUK Support Your Global Expansion

New trade agreements bring distinct opportunities for both outbound UK exporters and inbound investors. In this complex and dynamic trade environment, expert guidance is not optional – it’s essential.

Altios offers a 360° approach to international expansion. We support our clients from organic growth (strategy consulting, subsidiary setup & management, HR) to external growth (buyside M&A, site selection) through our team of experts across 24 countries worldwide.

In partnership with TechUK, together our aim is to actively support British companies, especially SMEs, in taking full advantage of agreements like the CPTPP. The firms that succeed will be those that move decisively, plan strategically, and partner with the right advisors.

Now is time to plan your 2025 global trade strategy and internationalise with Altios.

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Meet the team 

Sabina Ciofu

Sabina Ciofu

Associate Director – International, techUK

Daniel Clarke

Daniel Clarke

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Theophile Maiziere

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Authors

Arnoul d’ARSCHOT

Arnoul d’ARSCHOT

Advisory & Business Development Director, ALTIOS

Advisory & Business Development Director Email: [email protected]

M: +44 777 888 8069

ALTIOS www.altios.com

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