The TPP, which will see the elimination of 98 per cent of tariffs among 12 countries, was formally signed by Trade and Investment Minister Robb on 4 February 2016 in Auckland, New Zealand.
The TPP is being widely promoted as the world’s most significant trade and investment agreement finalised in more than two decades, with member countries accounting for around 40 per cent of global GDP.
Australia’s exports of goods and services to these countries were worth $109 billion last year – a third of Australia’s total exports. Tariffs will be eliminated on US$9 billion of Australia’s dutiable exports to TPP countries, including $4.3 billion worth of agricultural goods with new levels of access for beef, dairy, sugar, rice, grains and wine. A further $2.1 billion of Australia’s dutiable exports will receive significant preferential access through new quotas and tariff reductions.
Lets not forget however that of the 11 other countries that signed the TPP (USA, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru), Australia has already has FTAs with all but Mexico, Peru and Canada, but has a trade agreement with Canada (CANATA) that provides duty free entry to goods in nominated classifications. When reviewed with that information the benefits slip somewhat.