TPP breakthrough to boost Australian economy

The revival of the Trans-Pacific Partnership overnight is a major breakthrough for global trade which will deliver significant economic and strategic benefits for Australia.

The regional trade agreement between 11 Asia-Pacific economies will boost Australian exports, contribute to growth, jobs and investment, and help ease cost of living pressures on Australian consumers.

The finalisation of negotiations in Tokyo last night is the culmination of the leadership shown by the governments of Australia, Japan and New Zealand in pressing to revive the TPP following President Donald Trump’s withdrawal of the United States from the agreement a year ago.

This is an important advance which will maintain momentum for global trade liberalisation in the face of protectionist pressures.

It will also deliver wider strategic benefits for Australia’s ongoing engagement with the countries of the Asia-Pacific region, enhancing Australia’s standing as an advocate of open markets and a rules-based international order.

And the TPP will help lift millions of people out of poverty by boosting growth and development in emerging economies covered by the agreement, such as Vietnam, Malaysia and Mexico.

Economic modelling has found that even without the US, the TPP would boost Australia’s exports by US$23 billion, or four per cent, and its national income by US$12 billion, or 0.5 per cent, in 2030.[1]

Australia is a trading nation – 2.7 million Australian jobs rely on trade and trade accounts for 40 per cent of our economy – which means that the revival of the TPP is unambiguously good news.

Bipartisan political support since the 1980s for trade liberalisation has been a major contributor to Australia’s record 26-year run of uninterrupted economic growth.

The Minerals Council of Australia looks forward to engaging with Parliamentarians in coming months on the benefits that will flow from the TPP.

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[1] Peter A. Petri, M.G. Plummer, S. Urata and F. Zhai, 2017, “Going it Alone in the Asia-Pacific: Regional Trade Agreements Without the United States”, Peterson Institute for International Economics, Working Paper 17-10

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