Australia and the US are part of an historic new trade deal that will see nine countries phase-out import and export tariffs in favour of boosting the global economy through trading.
[Image, right: Tim Mathieson, Michelle Obama, Julia Gillard and Barack Obama. Picture: Ray Strange; Source: The Australian.]
The deal, called the Trans-Pacific Partnership (TPP), would ensure our manufacturers gain more access to global economies.
The broad terms of the trade agreement were set down by Australian prime minister Julia Gillard, US president Barack Obama and other global leaders during the Asia-Pacific Economic Cooperation (APEC) summit in Hawaii on the weekend.
“I’ve said consistently to Australians that trade equals jobs. We are a great trading nation and anything we can do to increase our capacity to trade is good for Australian jobs,” said Gillard at the APEC summit.
“In ambition, and this is very important, in ambition the TPP has as a goal eliminating barriers to trade in our region. That is, eliminating tariffs, a very important expression of the level of ambition of this new partnership.”
Gillard, Obama and other leaders involved in the TPP are aiming to have the agreement converted to law some time during 2012.
Japan is reportedly considering joining the TPP, which would mean the countries involved make up one-third of global GDP.
Australian trade minister Craig Emerson, who was also at the APEC summit, said the government has wanted Australia to be more closely aligned with Asia for a long time.
“The Trans-Pacific Partnership is an expression – an early indication – of our commitment to integrate our economy more closely into the fastest growing region on earth because that means more jobs and more prosperity,” said Emerson.
“We’re excited about the fact that the partners, the nine partners have agreed that the goal is to eliminate all tariffs which helps move this from a concept to something that’s very practical and very real because the elimination of tariff barriers means that we have access to other countries’ markets.
“Our own tariffs are very low or zero but having this goal expressed in the statements today means that other countries are fair dinkum about that.
“Better access for our exporters, whether they’re agricultural exporters, whether they’re manufacturing exporters, and increasingly in the 21st century, the service economy where all the new opportunities present themselves for Australia.”
Australian Manufacturing Workers Union (AMWU) national secretary, Dave Oliver, told ABC Radio this morning that he agrees with the premise of the TPP however the government should exercise caution.
"We know the United States have been keen to try and pare back our Pharmaceutical Benefits Scheme," he said.
"The US also wanted to extend the patent laws on pharmaceutical products which make it harder for Australian pharmaceutical manufacturers to manufacture generic products."