Australia has ratified on October 31st the Trans-Pacific Partnership (TPP-11) trade agreement giving farmers access to more markets, greater opportunities for businesses, more jobs, and increased investment.
Australia is the sixth country to ratify the agreement, meaning it can now enter into force on 30 December this year. The country joined Canada, Japan, Mexico, New Zealand, and Singapore as part of the first group to ratify.
The ratification means Australia is guaranteeing maximum benefits for its farmers and businesses, with the bonus of two tariff reductions within 3 days – one on 30 December and another on 1 January 2019.
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 the national economy by 2030.
Australian farmers and businesses will particularly benefit from new high-quality free trade agreements with Canada and Mexico, the first ever with these two of the world’s top 20 economies.
For example, the Agreement will provide new access to the Canadian market for Australian grains, sugar and beef exporters. It will open up the growing Mexican market for pork, wheat, sugar, barley and horticulture producers.
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 market access into Japan for beef, wheat, barley and dairy exporters beyond the bilateral Japan-Australia Economic Partnership Agreement.
Original source: DFAT
Published on 31 October 2018
