Australia has today ratified the Trans-Pacific Partnership (TPP-11) trade agreement, which is expected to lead to greater opportunities for Australian businesses, as well as increase jobs and investment.
Australia is the sixth country to ratify the agreement, meaning it can now enter into force on 30 December this year. The country joins Canada, Japan, Mexico, New Zealand and Singapore as part of the first group to ratify.
Australia’s ratification today means that we are guaranteeing maximum benefits for businesses, with the bonus of two tariff reductions within three days – one on 30 December and another on 1 January 2019.
Senator the Hon. Simon Birmingham, Minister for Trade, Tourism and Investment said that 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,” Mr Birmingham said.
“Australian farmers and businesses will particularly benefit from new high-quality free trade agreements with Canada and Mexico, our first ever with these two of the world’s top 20 economies,” he shared.
Moving forward, Australian exporters of industrial products such as leather, iron and steel, who currently sell $19 billion worth of products to TPP-11 markets, will be able to grow their businesses without facing a tariff disadvantage.
Tania Constable, CEO of The Minerals Council of Australia (MCA) said the free trade agreement is ‘great news for Australian jobs, workers and exporters’.
“The TPP-11 will give Australian exporters an early double tariff cut, helping our world-class Australian minerals companies as well as other export sectors like farming, manufacturing and wine,” explained Constable.
“Australia has long been a trading nation and our minerals exports are a major part of the story of Australia’s international economic success,” she said.
Economic modelling commissioned by the MCA and other Australian industry associations has shown that by 2030 the TPP-11 will:
- Increase Australia’s national income by $15.6 billion.
- Boost Australia’s exports by $29.9 billion.
- Generate additional direct investment into Australia of $7.8 billion and additional overseas investment by Australian businesses of $26 billion.
- Lift real wages with higher wage gains for lower-skilled workers.