Australia has become the sixth country to ratify the Trans-Pacific Partnership (TPP-11) trade agreement, paving the way for a December 30 start.
“We join Canada, Japan, Mexico, New Zealand and Singapore as part of the first group to ratify,” Trade Minister Simon Birmingham said in a statement yesterday.
The TPP-11 enters into force 60 days after six countries have ratified the agreement.
Mr Birmingham said the TPP-11 is one of the most comprehensive and ambitious trade agreements in Australia’s recent history.
“It will help support Australian businesses to grow and see annual benefits of up to $15.6 billion to our national economy by 2030,” he said.
“Our ratification means we are guaranteeing maximum benefits for our farmers and businesses.”
Under the new agreement, exporters will be eligible for two tariff reductions within 3 days – one on December 30 and another on January 1, 2019.
New FTAs with Canada and Mexico
The TPP-11 is Australia’s first trade agreement with Canada and Mexico giving exporters preferential access to two of the world’s top 20 economies for the first time.
TPP-11 will provide new access to the Canadian market for Australian grains, sugar and beef exports.
And it will open up the growing Mexican market for Australian pork, wheat, sugar, barley and horticulture producers.
The pact includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Australian exporters of industrial products such as iron and steel, leather and paper products and medical equipment, who currently sell $19 billion worth of products to TPP-11 markets, will be able to grow their businesses without facing a tariff disadvantage.
The TPP-11 also improves our market access into Japan for our beef, wheat, barley and dairy exporters beyond the bilateral Japan-Australia Economic Partnership Agreement.