Australia’s Prime Minister Malcolm Turnbull welcomed a major trade deal between 12 countries. It impacts as much as 40 percent of international economy. Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Pero, Singapore, U.S. and Vietnam belong to the partnership.
It will play a huge foundation for the country down under. Officials say the Trans-Pacific Partnership agreement will cut 98% of charges on every product including food, industrial products, properties and power.
Exports of sugar to U.S. will now double and expected to reach up to 400,000 tons on 2019-2020 from the current figure of 107,000 tons. Beef will freely be exported to Japan and the charges of Canada, Mexico and Peru will be waived. Tariffs for dairy export to Japan will also be eliminated. It is finally possible for Australia to trade more rice to the land of the rising sun, Japan.
The TTP also immediately cuts charges of minerals like copper and iron ore to Peru. Canada will no longer require tariffs for exported iron and steel goods. Vietnam will waive its tariffs within the decade. The countries belonging to the TTP will no longer require tariffs to the patent and copyright rules of Australia.
According to trade minister Andrew Robb, there are victors and losers but the deal will ultimately lead to rise in employment and fantastic opportunities. On 2014, around 1/3 of exports made in Australia, amounting to $109 billion, were made to TTP nations.
Prime Minister Turnbull said he deliberated the agreement personally with the president of U.S. Barack Obama. He also spent plenty of time over the phone on the previous days to close the agreement. He announced on a radio station that the deals are a win for all. There are compromises, but all negotiations are like that, he explained.
The countries has been working on the deal over 5 years, full details will be publicized after some time. Mr. Robb believed the agreement was chiefly good for services in Australia. The TTP paves the way for improved access to education, transportation, economic advice and healthcare workers across participating countries. The deal will also increase investments from foreigners in establishments like bed stores Perth.