Image: Department of Foreign Affairs & Trade.
BY REUBEN ADAMS
THE Minerals Council of Australia and nine other national industry groups have expressed strong support for the resurrected Trans-Pacific Partnership (TPP), which was formally signed in Chile by 11 nations after the US backed out last year.
Ministers and senior officials representing Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on 8 March.
The TPP-11 will enter into force 60 days after at least 50 per cent of the original signatories to the Agreement have notified each other of the completion of their domestic legal procedures.
US President Trump’s decision to withdraw the world’s largest economy from the deal was one of his first actions as President, but the newly signed TPP-11 agreement could still eliminate more than 98 per cent of tariffs in a trade zone with a GDP of $13.7 trillion that spans the Americas and Asia.
Economic modelling released by the Minerals Council and nine the industry bodies claimed the current TPP would boost the value of Australia’s exports by $30 billion – or four per cent – and Increase Australia’s GDP by $18 billion, or 0.5 per cent.
“Australia is a trading nation – 2.7 million Australian jobs rely on trade and trade accounts for 40 per cent of our economy,” the report stated.
“That means it is in Australia’s interests to resist protectionist pressures.
“Modelling shows that if countries around the world imposed extra tariffs of just 10 per cent, Australia’s economy would contract by 1.4 per cent, risking higher unemployment and lower incomes.
“This means supporting the TPP would be a strong statement in favour of international trade and open markets, which are critical for Australian prosperity and for our long-term strategic interests as a nation.”
According to the Department of Foreign Affairs and Trade, Australian exports of resources and energy products to TPP-11 countries are valued at around $42 billion.
“The TPP will create new opportunities for Australian mining and mining services exports in the Asia-Pacific – opportunities which will benefit all Australians by supporting jobs, living standards and economic growth,” the Department stated.
The TPP-11 would eliminate tariffs on key Australian minerals, petroleum and LNG exports and lock them in at zero, and improve regulatory environments for Australian miners and oil and gas companies seeking to find and develop reserves in the region.
Australian Mining Equipment, Technologies and Services (METS) businesses also stood to benefit from better market access conditions.
