The new trade agreement signed after the US’ withdrawal is considered “a vital win” for Australia, according to the country’s prime minister Malcolm Turnbull.
The participating countries include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam with a combined market value of close to AU$13.7 trillion.
Signed last week in Chile by Australian trade minister Steve Ciobo, the agreement will see the removal of 98% of tariffs in the Trans Pacific region including a range of Australian goods from beef, dairy, seafood to wine, iron, copper and petroleum, reported Financial Review.
“The world will be drinking more Australian wine, eating more Australian beef and using more Australian services thanks to the TPP-11,” the trade minister was quoted as saying.
The deal was signed after the US publicly withdrew from the trade pact talks in January last year – one of the first things that Donald Trump did as president, prompting fear at the time that the pact would be derailed. However, the deal was revived led by efforts from Japan and Australia.
When the agreement is in place, import tariffs on Australian wines in key markets such as Japan will be eliminated in seven stages from current 15% to zero, according to Winemakers’ Federation of Australia.
Import tariffs on premium Australian wine (>AU$5 per bottle) in Mexico will be reduced from 20% to zero in four stages over three years. Existing rates range between 50% and 59% and will be eliminated over 11 years in Vietnam.
Australia already has FTA agreements with Chile, New Zealand, Malaysia, and Peru.