The Trans-Pacific Partnership (TPP) trade pact, which stalled when the US pulled out of the deal and Canada had second thoughts on the agreement, is back on with the 11 remaining countries expected to sign a reworked agreement named the  Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 08 March in Chile.

The original agreement - the Trans-Pacific Partnership (TPP) – has been renegotiated as the CPTPP by members Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Andrew Hudson, a Rigby Cooke Lawyers partner, Customs and trade expert and AirCargo Asia-Pacific columnist says the new deal will see new trade and investment opportunities, integrate economies and promote and facilitate supply chains in the region.

 

“After surviving withdrawal by the US and stalling by Canada, reports from the World Economic Forum at Davos indicate an agreement on the terms of the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been reached,” said Hudson.

 

“Full details are still to be released, (but) this will be a welcome counterpoint to the current protectionist ‘me first’ attitude.

 

“Just as importantly, it demonstrates that even when countries are in disputes at the WTO and elsewhere, they can still collaborate on deals for the greater good.

 

“The conclusion of the CPTPP will also place more focus on other regional deals such as the proposed Regional Comprehensive Economic Partnership.

 

“More details will follow when the text of the CPTPP is released and signed – including whether the investor-state dispute settlement provision remains and what has changed from the TPP – and how the deal will provide for other countries to join in the near future, which could include South Korea and the US after the Trump administration passes.

 

“Based on the terms of the TPP, some of the benefits appear to be as follows:

 

* It will lock in greater trade access for Australia to markets estimated to be worth almost A$14 trillion.

 

* It will improve our existing FTAs with countries that are also parties to the CPTPP.

 

* Australia’s exports of goods and services to the CPTPP countries were worth nearly A$88 billion in 2016-2017, representing almost a quarter of our total exports.

 

* It will constitute new trade deals for Australia with Canada and Mexico.

 

* It will eliminate more than 98 per cent of tariffs in the trade zone.

 

* Tariffs will be eliminated on trade in sheep, meat, cotton, wool, seafood, horticulture, wine and industrial products. The beef industry will benefit from accelerated reductions in Japan’s tariffs.

 

* New quotas for wheat, rice and sugar to Japan, Canada and Mexico will be granted.

 

* There will be improved conditions for Australia’s services exports such as the provision of mining and agricultural services in Mexico."