In­dus­try sup­ports re­vived TPP

The Australian Mining Review - - NEWS - 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.

Graphic: De­part­ment of For­eign Af­fairs & Trade.

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