Trade Talk, 8 October 2015

TPP special edition

With the conclusion of the Trans-Pacific Partnership Agreement, the biggest trade deal in 20 years, this week in Atlanta, USA, Trade Talk brings you a special, ‘TPP Edition’.

Trans-Pacific Partnership Agreement (TPP) opens new era of opportunities

The Prime Minister and Minister Robb have welcomed the landmark conclusion of the TPP negotiations, which ushers in a new era of economic growth and opportunity across the Asia-Pacific. The TPP will see the elimination of tariffs on US$9b of Australia’s dutiable goods exports to TPP countries and establish more seamless trading conditions among 12 countries representing almost 40% of global GDP.

Outcomes: Services

The TPP will create a significant new platform for growth in Australian services exports by removing key barriers, as well as providing more transparent and predictable operating conditions, in TPP countries. Australia’s services exports to TPP countries were worth $20b in 2014.

DFAT: Outcomes: Services market access

Outcomes: Investment

The TPP will boost and promote diversification of investment in TPP countries by opening up new lucrative opportunities in areas such as financial services and mining and resources.  Australian investment in TPP countries reached $868b in 2014. 

DFAT: Outcomes: Investment

Outcomes: Biologics

In a first for a trade agreement, the TPP contains intellectual property rights and other specific protections for biologics, a rapidly-evolving class of medicines that treat difficult to cure diseases and illnesses, such as cancer. Importantly, this does not change Australia’s existing 5 years of data protection for biologics or any other part of our health system, and will not increase the cost of medicines.

DFAT: Outcomes: Biologics

Outcomes: Health

The TPP will support the expansion of Australian health goods and services exports across the Asia-Pacific.  TPP health outcomes include the elimination of all duties on Australian exports of medical instruments and devices (valued at approximately and $1.1 billion in 2014) and Australian pharmaceutical exports (valued at around $695 million in 2014) to TPP countries.

DFAT: Outcomes: Health

Outcomes: Trade in the digital age

The TPP includes new rules about the movement and storage of data, as well as enhanced commitments to protect privacy, consumer rights and efforts to combat ‘spam’ messages.  Recognising the negative impact of high international mobile roaming charges on businesses and consumers, TPP countries have agreed to work cooperatively to promote reasonable international mobile roaming rates.

DFAT: Outcomes: Trade in the digital age

WTO Director-General congratulates TPP countries

WTO Director-General Azevêdo has congratulated TPP countries for successfully concluding negotiations. He said reaching agreement on a difficult range of issues proves that complex trade deals can be done and called on WTO members to accelerate their work ahead of the WTO’s 10th Ministerial Conference.

WTO News: DG Azevêdo congratulates TPP ministers

Export Council of Australia (ECA) applauds conclusion of TPP negotiations

The ECA has applauded the conclusion of the TPP negotiations, commending Australia’s ongoing pursuit of trade liberalisation. ECA CEO Lisa McAuley said, “by creating commonly agreed rules to trade in goods and services and promoting transparency, the TPP opens up new trade and investment opportunities for Australian businesses in the region, which is a key driver of global economic growth.”

ECA Article: TPP - signing Australia's biggest trade deal in a generation

Early support expressed for the TPP

Early, strong support for the outcomes from the TPP negotiations has been expressed by a range of domestic stakeholders, as well as State and Territory Governments.

Upcoming Trade Events

North Asia Free Trade Agreements Information Seminars: 16 Oct Windsor NSW

If you are a current or prospective exporter don’t miss this free, interactive session which explains practical benefits your business could realise from Australia’s historic FTAs with our three largest export markets – China, Japan and Korea.

Register: North Asia FTA information seminars

Last Updated: 9 October 2015