Manufacturing News

TPP down, business as usual for Australian manufacturers

For Australian manufacturers, experts believe that there will be not much change now that the USA has left the TPP. University of Western Australia’s head of Economics Professor Peter Robertson told SBS in November 2016 that it would be “business as usual” for Australian manufacturers.

Australia has free-trade agreements with the USA and there are not many sectors that we don’t have free trade with the USA already. So with us and the USA, not much is going to change,” he said.

“I suppose the big winners with the TPP were countries from South America and south-east Asia – in that it gave them access to the US.

“But (should the US pull out) there’s nothing stopping a TPP member such as Japan forming a bilateral agreement with the US.

This is in light of US president Donald’s Trump’s decision to leave the Trans-Pacific Partnership (TPP) and according to news reports, may prove a boon for US manufacturers and potentially damaged the country’s broader geopolitical clout in Asia.

China is looking to take advantage of new American isolationism and negotiate a new 16-member trade agreement, Regional Comprehensive Economic Partnership which, excludes the USA and does not contain the environmental and labour protections that the TPP had included.

Leave a Reply

Send this to a friend