The Trans-Pacific Partnership (TPP-11) has passed parliament, making Australia the fourth nation to ratify the global trade agreement involving 10 other countries.
On Wednesday, Labor voted with the government to pass the legislation enabling the TPP, which minister for Trade, Tourism and Investment Simon Birmingham would open markets for Australian farmers, manufacturers and businesses across the Americas and Asia.
“The agreement means more market access for our farmers, greater opportunities for our businesses, more jobs and increased investment for Australia,” Birmingham said.
“This landmark agreement is one of the most comprehensive trade deals ever concluded and strips 98 per cent of tariffs for 11 countries with a combined GDP of more than $13.8 trillion and close to 500 million consumers.”
The TPP-11 removes 98 per cent of tariffs for the 11 signatory coutnries and cover 13 per cent of the world economy. Alongside Australia, the agreement will include Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.
Birmingham said that modelling showed Australia is forecast to see $15.6 billion in net annual benefits to national income by 2030 from the TPP-11.
“International trade creates jobs and drives investment,” he said.
“The TPP-11 offers significant advantages for Australian exporters including accelerated reductions in Japan’s tariffs on Australian beef, greater quota volumes for wheat and barley, new access for dairy products and clear investment regimes for mining and resources.”
Australia is the fourth nation to ratify the TPP-11. Alongside Australia, Mexico, Japan and Singapore have passed the enabling legislation. The TPP-11 will come into force 60 days after six countries have ratified the agreement.