The Trans-Pacific Partnership (TPP) has been eight years in the making and spans 12 Pacific-rim nations that between them comprise 40 per cent of the global economy – so what's the verdict?
Australian Food and Grocery Council (AFGC) CEO Gary Dawson said the TPP agreement would bring significant benefits for Australia’s food and grocery sector.
“This regional trade agreement will further open up some of Australia’s key export markets, particularly in the food, beverage and grocery sectors. The TPP builds on earlier trade agreements, including with the United States, Japan, Malaysia and Singapore,” Dawson said.
“The TPP sets a global standard for trade liberalisation going forward.
"The TPP provides a common set of rules among 12 countries which will greatly support Australian food exporters’ participation in regional and global supply chains.”
Dawson also said the TPP would encourage investment between parties by raising the foreign investment review board screening threshold to $1,094 billion for non-sensitive sectors.
“Food manufacturing in Australia requires greater access to foreign investment to provide the capital needed to expand and meet the demand from TPP partners, and we would encourage the Australian Government to consider these investment requirements in their regulatory policy making.
“The commercial benefits to business and opportunities for consumers are the immediate benefit of the Trans Pacific Partnership.
"The TPP will be the most significant trade agreement concluded in the last 20 years once it enters into force.”
The National Farmers’ Federation said the TPP would improve market access for a range of agricultural commodities, including red meat, dairy, fibre and grains, and Australian Industry Group chief executive, Innes Willox, said the TPP had the potential to transform Australian industry’s engagement across the Pacific.
“This agreement opens up new opportunities for Australian investment and exports. It gives easier access into markets that have been particularly tough nuts to crack.
The CEO of the Export Council of Australia (ECA), Lisa McAuley, said that by creating commonly agreed rules to trade in goods and services and promoting transparency, the TPP opens up new trade and investment opportunities for Australian businesses in the region.
“There has been some criticism that our current FTAs have not "gone far enough" and the TPP Agreement provides a welcome opportunity for Australia to negotiate improved outcomes for some of those parties who believe that better outcomes can be achieved.”
Fonterra chairman John Wilson said the conclusion of the TPP was a small but significant step forward for the dairy sector.
However he also said that the “entrenched protectionism demonstrated by the US dairy industry in particular had ensured that the deal on dairy failed to reach its potential”.
Choice, meanwhile, is urging the Government to make all details of the TPP publicly available as soon as possible and for the Productivity Commission to conduct a full cost-benefit analysis of the agreement, now that negotiations have been completed.
TPP outcomes include:
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the elimination of 98 per cent of tariffs on Australia’s exports, including Australia’s food, beverage and grocery exports;
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further reduction of tariffs on Australian exports of beef to Japan to nine per cent; tariffs on beef into Mexico and Canada will be eliminated within 10 years, and the AUSFTA beef safeguard into the US will be eliminated;
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an additional 65,000 tonnes of sugar to the US; further levy reduction for high polarity sugar into Japan; elimination of the tariff on refined sugar into Canada; elimination of tariffs on raw sugar into Peru; and for the first time wholesale licensing arrangements for supply of refined sugar to the food and beverage industries in Malaysia will be liberalised;
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arrangements to export more rice to Japan and agreement on new administrative arrangements to facilitate trade;
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tariffs will be eliminated on a range of cheese exports to Japan covering over $100 million in existing trade, with new preferential access for a further estimated $100 million of trade; new quota access for Australia on butter and skim milk powder; additional 9,000 tonnes of cheese to the US, as well as tariff elimination on milk powders and Swiss cheese;
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tariff elimination on wheat and barley exports into Mexico (within 10 years) and Canada (upon entry into force); reductions of the fees applied to wheat and barley in Japan and the creation of new quota arrangements.
