Trans-Pacific Partnership to be signed this week
Member for O’Connor Rick Wilson MP says Australia’s agricultural industry will have unprecedented access to international markets when the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into effect.
Mr Wilson said the deal, expected to be signed by member nations in Chile on Thursday, March 8, would give businesses in O’Connor new and improved access to markets in ten counties around the Pacific Rim.
The CPTPP will see the immediate elimination of tariffs on sheep meat exports to all CPTPP countries, with the exception of Mexico, which will stage the removal of tariffs.
Tariffs on beef in Japan will be reduced over the next decade, while tariffs in Canada, Peru and Mexico will be eliminated during the same period.
Wine producers will benefit from the removal or reduction of tariffs on Australia products in Canada, Malaysia, Mexico, Vietnam and Peru.
Tariffs on Australian seafood sold in Vietnam will be eliminated immediately, and phased out in Japan and Mexico over the next 15 years.
Mr Wilson said the agreement presented a major opportunity for local businesses to become internationally competitive and expand their operations.
“A very significant portion of WA’s commodity exports originate from O’Connor, and this deal has huge potential to drive growth in our local industries,” he said.
“It will create better market conditions for WA businesses, giving them access to new markets and higher levels of demand on a scale that we’ve never seen.
“We’ve experienced a massive growth in our exports to China since we signed the China-Australia Free Trade Agreement – for example, in a nine-month period last year, bottled wine exports grew 129 per cent to $498 million.
“Australia already exports $12.3 billion of agricultural products to CPTPP countries, and this deal will speed up growth in the Pacific region.”
About the CPTPP:
Beef is Australia’s largest global agricultural export, worth $7.1 billion in 2016/17. The CPTPP will see:
o Reduced tariffs into Japan within 15 years and the elimination of tariffs on offal over 10 to 15 years;
o Elimination of Canadian tariffs within 10 years, which are currently 26.5%;
o Elimination of Peruvian tariffs within 10 years, which are currently 17%;
o Elimination of Mexican tariffs on beef carcasses and cuts within 10 years, which are currently up to 25%) and immediate elimination of other offal tariffs.
· Sheep Meat exports are valued at $425.2 million in CPTPP markets. The CPTPP will see the immediate elimination of tariffs on sheep meat exports to all CPTPP countries, with the exception of Mexico which will eliminate tariffs within 8 years;
· Wool exported to CPTPP countries is worth $36.5 million to the Australian economy. The CPTPP will see greater opportunities for Australian wool producers with the complete elimination of tariffs on raw wool exports to CPTPP countries.
· Cereals and Grains exports to CPTPP countries contributes $1.6 billion to our economy. The CPTPP will deliver:
o Improved market access in Japan for wheat, barley and malt;
o Elimination of Mexican tariffs on wheat within 10 years (currently at 67 percent);
o Elimination of Mexican tariffs on barley within 5 years (currently at 115 percent);
o Elimination within 5 years of Peruvian tariffs on cereals and grains;
o Immediate elimination of Canadian tariffs on cereals and grains.
· Wine exports to CPTPP countries is valued at $443.2 million. The CPTPP will benefit our wine industry through the:
o Immediate elimination of Canadian tariffs on wine;
o Elimination of Malaysian tariffs within 15 years, which are currently subject to tariffs ranging from 7 to 23 Malaysian Ringgit per litre;
o Elimination of Vietnamese tariffs within 11 years, which are currently subject to tariffs of up to 59%;
o Elimination of Mexican tariffs for high quality wines, currently subject to 20%, with all other wine tariffs being reduced within 10 years;
o Immediate elimination of Peru’s 9% tariffs on table wine and elimination of all other wine tariffs within 5 years.
· Horticulture exports to CPTPP countries is valued at $830.8 million. The CPTPP will benefit our horticultural industries through:
o Better market access for Australian oranges and an elimination of tariffs on fruit juices within 10 years in Japan;
o Immediate elimination of Canadian tariffs on horticultural products;
o Immediate elimination on most of Peru’s horticultural tariffs, which are currently up to 17%;
o Immediate elimination on most of Mexico’s horticultural tariffs, with complete elimination within 15 years.
· Seafood exports to CPTPP countries is valued at $1.1 billion. The CPTPP will benefit our seafood industry through the:
o Elimination of all Japanese seafood tariffs within 15 years;
o Immediate elimination of all Vietnamese seafood tariffs;
o Elimination of Mexico’s seafood tariffs within 15 years, with the majority eliminated immediately.
Media contact: Andrew Brosnan 0488 643 593