It’s been a decade in the making, but the Trans- Pacific Partnership (TPP-11) Agreement is now finally a reality.
From January 1, Australian exporters can get immediate tariff reductions and better access in new markets across the Americas and Asia.
The agreement is one of the most comprehensive trade deals ever concluded and will eliminate more than 98 per cent of tariffs in a trade zone with a combined GDP worth $13.7 trillion.
Under TPP-11, Australia will enjoy greater trade benefits with member countries Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Trade Minister Simon Birmingham welcomed the TPP-11 after independent modelling found Australia would see an estimated $15.6 billion in net annual benefits to national income by 2030 from the new agreement.
“The TPP-11 is Australia’s first trade agreement with Canada and Mexico, and Australian exporters and investors will benefit from new opportunities in those two markets, as well as improved opportunities in other key international markets including Japan,” Senator Birmingham said.
Australian farmers, manufacturers, service providers and small businesses are the big winners.
The TPP-11 eliminates or substantially lower tariffs on many of Australia’s key goods exports including wine, beef, dairy, wheat, sugar, and manufactured goods such as leather products, paper and medical equipment.
In 2016-17, nearly one quarter of Australia’s total exports, worth nearly $88 billion, went to TPP-11 countries. This will continue to grow as tariffs tumble under the TPP-11.
- Reductions in Japan’s tariffs on fresh, chilled and frozen beef, (Australian exports worth $2.1 billion in 2016-17)
- New access for dairy products into Japan, Canada and Mexico, including the elimination of a range of cheese tariffs into Japan covering over $100 million of trade
- New sugar access into the Japanese, Canadian and Mexican markets
- Tariff reductions, and new access for cereals and grains exporters into Japan, including, for the first time in 20 years, new access for rice products into Japan;
- Elimination of all tariffs on sheepmeat, cotton and wool
- Elimination of tariffs on seafood, horticulture and wine
- Elimination of all tariffs on industrial products (manufactured goods)
- Guaranteed levels of access for services
- Liberalised and improved regulatory regimes for investment, including mining/resources, telecommunications and financial services
The TPP-11 will help grow digital trade with rules that cover the movement and storage of data, privacy, consumer rights, and combat spam.
It follows recent free trade agreements with Australia’s major Asian trading partners China, Japan and South Korea.