Australia to benefit from ‘TPP minus one’ free trade deal – MCA

PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) has welcomed the revival of the Trans-Pacific Partnership (TPP), saying Australia would stand to gain significant economic benefits from the regional trade agreement.

Eleven Asia-Pacific countries, including Australia, over the weekend agreed to revive the free trade deal, despite a January decision by US President Donald Trump to withdraw from the TPP.

The original TPP, which took more than five years to negotiate, covers about 40% of global gross domestic product (GDP).

MCA CEO Brendan Pearson said on Monday that the new TPP would deliver benefits for Australia by reducing barriers to trade in a wide range of goods and services and improving access to export markets in the Asia-Pacific.

“Australia’s manufacturing, agriculture, resources and services industries will all gain better access to regional export markets such as Japan, Canada, Mexico, Vietnam and Peru under a revived TPP,” Pearson said.

He pointed to economic modelling that showed the TPP would boost Australian exports by A$39-billion, or 4.9%, and Australian national income by A$20-billion, or 0.6% of GDP, in 2030.

“The Trump administration’s decision to withdraw from the TPP does not reduce these economic gains – in fact, if anything, it will increase the benefits for Australia,” Pearson said.

“That’s because Australia already has access to the US under its existing bilateral free trade agreement, while a number of other TPP member countries will not have preferential access to the US market.

“With around 2.5-million Australian jobs relying on trade, yesterday’s decision by regional trade Ministers to explore all options for bringing the ‘TPP minus one’ into force is a welcome development.”