TPP trade agreement set to help exports

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Paul Osborne
(Australian Associated Press)

 

Businesses and farmers are set to benefit from two tariff cuts within three days, under the Trans-Pacific Partnership trade pact.

The TPP-11 starts with a tariff cut on December 30 followed by a second on January 1.

Analysis of the trade agreement shows potential benefits of up to $15.6 billion to the national economy by 2030.

In October, Australia became the sixth country to legally ratify the agreement, joining Canada, Japan, Mexico, New Zealand and Singapore as part of the first group to ratify.

Agreement signatories include Brunei Darussalam, Chile, Malaysia, Peru and Vietnam.

The pact sets commonly agreed rules to provide greater certainty for businesses and reduce costs.

The agreement will provide new access to the Canadian market for Australian grains, sugar and beef exporters.

It will also open up the growing Mexican market for pork, wheat, sugar, barley and horticulture producers.

Trade Minister Simon Birmingham says exporters of industrial products such as iron and steel, leather and paper products and medical equipment will be able to grow their businesses without facing a tariff disadvantage.

The TPP-11 also improves Australia’s market access into Japan for beef, wheat, barley and dairy exporters beyond the bilateral Japan-Australia economic partnership agreement.

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