Australian Trade Minister brags benefits of TPP

The Trans Pacific Partnership Agreement (TPP) will benefit Australia especially its goods and services sector, Australian Minister for Trade and Investment Andrew Robb said in a press release received here on Thursday.

Hailing the TPP as "historic," Robb, who traveled to New Zealand for the official signing ceremony, called the trade deal "the world's most significant trade and investment agreement finalized in more than two decades with member countries accounting for around 40 percent of global GDP."

Robb said, the agreement will promote the expansion and diversification of Australia's world-class services sector by liberalizing key barriers, providing more transparent and predictable operating conditions, and it will capture future services sector reforms.

The treaty will see the elimination of 98 percent of tariffs among 12 countries - Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.

Australia's exports of goods and services to these countries were worth 109 billion AU dollars (78 billion U.S. dollars) in 2015, a third of Australia's total exports. In 2014, Australian investment in TPP countries was 45 percent of all outward investment.

Tariffs will be eliminated on 9 billion U.S. dollars of Australia's dutiable exports to TPP countries, including 4.3 billion worth of agricultural goods with new levels of access for beef, dairy, sugar, rice, grains and wine.

A further 2.1 billion of Australia's dutiable exports will receive significant preferential access through new quotas and tariff reductions.

Robb also stressed the importance of this agreement on the so-called 21st century trade areas like e-commerce and increasingly important global value chains.

"The embrace of paperless trading, streamlined customs procedures and trading rules, assistance for Small and Medium-sized Enterprises, more seamless data flows and greater flexibility with data storage, are all features of the TPP," he said.

The TPP sets in place common rules for labour, the environment and for the first time in a trade treaty rules to combat bribery and corruption. It will also ensure private companies and businesses are able to effectively compete against State Owned Enterprises.

Each TPP country will now follow its own domestic treaty making process before the agreement can enter into force. In Australia, this will include a Joint Standing Committee on Treaties inquiry and the consideration by parliament of any implementing legislation or amendments.

Analysts say the ratification process could take at least two years, and the process is looking uncertain in major players including the U.S. and Canada. Enditem