Trans-Pacific Partnership: what the deal is and what it means for Australia

Australia has joined 10 other nations to sign the long-awaited Trans-Pacific Partnership, which many thought was doomed when Donald Trump withdrew the United States from the Obama-era pact in January 2017.

But after strong lobbying by Japan and Australia, the idea was revived and on Friday they struck the renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or TPP-11.

The central purpose of the TPP is to further open up the markets of its member countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Trade tariffs will be slashed considerably. The deal will eliminate 98% of trade barriers, opening up access to a combined marketplace worth close to $13.7tn.

Even without the US, it’s a hugely significant deal and could become a blueprint for future regional free trade agreements. Other nations have the chance to enter at a later time, if they so wish, and there have been suggestions Indonesia and even the United Kingdom may have some interest.

Source: theguardian