THE nation’s agricultural and mining sectors are set to gain major new market access after the Australian government agreed to a new trade agreement with a number of Asia-Pacific nations yesterday.
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The Trans-Pacific Partnership (TPP) agreement between Australia and 11 other countries is the biggest of its kind.
Agriculture and Water Resources Minister Barnaby Joyce said the deal was a significant step in advancing the opportunities for Australia’s agriculture, food, fisheries and forestry producers in some of the world’s largest economies.
“The TPP provides significant advantages for Australian agriculture, with major improvements to access for beef, dairy, grains, cotton, sugar, horticulture, rice, seafood and wine across 11 countries, five of which are Australia’s top 10 trading partners,” Mr Joyce said.
“We currently export approximately $15 billion, or around 33 per cent, of agricultural products to TPP countries, with many of our products currently facing high tariffs that add to the cost of exports. The TPP will eliminate tariffs on more than $4.3 billion worth of exports of Australian agricultural products.
“For Australian beef exports, we will see Japan’s beef tariffs reduced to 9 per cent within 15 years of entry into force of the TPP, and elimination of the United States’ price-based safeguard under the Australia-United States Free Trade Agreement on entry into force. Canadian beef tariffs will be eliminated over 11 years.
“Australian wine exports will see elimination of Canada’s tariffs upon entry into force, Malaysian tariffs within 15 years, Vietnamese tariffs within 11 years and Mexican tariffs within three years.
“And the TPP will see all tariffs on Australian cotton eliminated – most on entry into force.”
The Minerals Council of Australia said the TPP agreement would boost opportunities for the country’s mineral and energy export sector, along with opening up markets for the growing mining technology and services sector.
“The agreement will remove or reduce tariffs on minerals and energy exports and mining equipment, and reduce restrictions on the provision of consulting, research and development, engineering, and environmental and technical services,” Minerals Council of Australia chief executive officer Brendan Pearson said.
Mr Pearson said the changes to the investment thresholds would open Australia up to new sources of capital.
“The change to investment thresholds in Canada, and greater transparency and stability in tax and investment rules in Vietnam and Malaysia, will boost investor confidence,” he said.
Mr Joyce said Australia the agreement was the beginning of a new relationship with TPP countries.
“(A relationship) which we will use to continue to press for improved market access for our producers and exporters,” he said.
