Trade ministers from Australia and 10 other Pacific Rim countries signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) in Santiago, Chile, on 8 March.
TPP-11 is a new treaty that incorporates most of the provisions of the original Trans-Pacific Partnership Agreement, which was signed in 2016 but did not come into force.
TPP-11 reaffirms the participating countries’ commitment to maintaining open markets, increasing world trade, and creating new economic opportunities for people of all incomes and economic backgrounds.
The 11 countries signing the treaty in Santiago were Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Announcing the signing, the Australian Government noted that TPP-11 is one of the most comprehensive trade deals ever concluded, and will eliminate more than 98% of tariffs in the affected trade zone.
It is also Australia’s first free trade agreement with Canada and Mexico, both of which are in the world’s top 20 economies.
Key provisions of the TPP-11 affecting Australian producers include:
- new reductions in Japan’s tariffs on fresh, chilled and frozen beef
- new access for dairy products into Japan, Canada and Mexico, including the elimination of cheese tariffs into Japan
- new sugar access into the Japanese, Canadian and Mexican markets
- tariff reductions and new access for cereals and grains into Japan, including rice
- elimination of all tariffs on sheep meat, cotton and wool
- elimination of tariffs on seafood, horticulture and wine
- elimination of all tariffs on industrial products (manufactured goods).
Queensland agricultural exporters are likely to be among those who benefit from the new agreement.
Each signatory to TPP-11 will now need to go through the necessary processes to put the treaty into force under their own domestic laws.
In Australia, the treaty is scheduled to be tabled in federal parliament later this month, and will then be reviewed by the Joint Standing Committee on Treaties, which will accept public submissions during the review.
More information on the TPP-11 can be found on the Department of Foreign Affairs and Trade website.
If you would like advice or support to take advantage of Australia’s free trade agreements to export your product, connect with TIQ.