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.
What is the deal?

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.

The TPP also comes at a time when major powers, such as the US, are reverting to protectionist trade policies. The head of policy at the Export Council of Australia, Heath Baker, said its symbolism was significant.

“[The TPP] shows that despite the protectionism coming out of the US, there is still momentum to increasing shared prosperity through freer trade,” he said.


Source: theguardian