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FTAs including new opportunities in TPP-11
Grant Robinson Office of Trade Negotiations, Department of Foreign Affairs and Trade
FREE TRADE AGREEMENTS FTAs including new opportunities in TPP-11 - - PowerPoint PPT Presentation
FREE TRADE AGREEMENTS FTAs including new opportunities in TPP-11 - - PowerPoint PPT Presentation
FREE TRADE AGREEMENTS FTAs including new opportunities in TPP-11 Grant Robinson Office of Trade Negotiations, Department of Foreign Affairs and Trade WHAT IS AN FTA? A Free Trade Agreement is an international treaty that reduces or
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WHAT IS AN FTA? A Free Trade Agreement is an international treaty that reduces or eliminates certain barriers to cross- border trade and investment.
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WHAT DO FTAs DO FOR BUSINESS?
Better access to key markets; and an improved competitive position for Australia = Direct benefits for Australian business PLUS more investment attractiveness and more competitively-priced imported business inputs
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USING AN FTA – NOT BUSINESS AS USUAL
The preferential tariff outcomes from FTAs DO NOT OCCUR AUTOMATICALLY Exporters and producers need to do something different from “business as usual”, as it was prior to these FTAs.
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USING AN FTA Proving the Australian “origin” of your product
WHAT ARE YOU EXPORTING HOW ARE YOUR GOODS TREATED MEETING THE RULES OF ORIGIN CERTIFYING ORIGIN CLAIMING FTA TARIFF PREFERENCE Determine the applicable HS (tariff) Code Use the HS (tariff) code to identify the tariff rate Does your product meet criteria for ‘Australian origin’
- Certify your
goods with a Certificate/
- Declaration
- f Origin
Submit origin documentation to importing customs authority
> > > >
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NORTH ASIA: LEADING MARKETS FOR AUSTRALIA 54%
OF AUSTRALIA'S MERCHANDISE EXPORTS
24%
OF AUSTRALIA'S SERVICES EXPORTS
38%
OF AUSTRALIA'S TOTAL TRADE
ABS 2016/17 trade data
$282b combined
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100 200 300 400 500 600 700 800 2015 2016 2017
Australian exports of bottled wine to China: $746m in 2017
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EXAMPLE: ChAFTA TRADE OUTCOMES
The Chinese tariff on Australian bottled wine has been cut from 14% to 2.8%, and will be eliminated on 1 January 2019.
ChAFTA enters into force
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WHAT IS THE TPP-11 AGREEMENT?
TPP-11 is a free trade agreement involving Australia and 10 other countries. It will provide new market access
- pportunities for Australian exporters of
goods and services will create new jobs. The Agreement allows for other members to join in the future – if they meet certain high standards.
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TPP-11 COUNTRIES: LEADING MARKETS FOR AUSTRALIA
10
23.9%
OF AUSTRALIA'S GOODS EXPORTS WENT TO TPP-11 COUNTRIES
22.5%
OF AUSTRALIA'S SERVICES EXPORTS WENT TO TPP-11 COUNTRIES
22.3%
OF AUSTRALIA'S TOTAL TRADE
Source: ABS 2016/17 trade data
$164b combined
In 2016-17:
15.6%
OF THE TOTAL STOCK OF FOREIGN INVESTMENT WAS IN THE TPP-11 COUNTRIES
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Setting high-standard rules in the region:
TPP-11 OUTCOMES
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Goods and services exports to Canada and Mexico:
TPP-11 OUTCOMES
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Goods exports to existing FTA partners:
TPP-11 OUTCOMES
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Services exports to existing FTA partners:
TPP-11 OUTCOMES
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SHOULD I USE TPP-11?
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0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Tariff Rate (%)
Example: Frozen Yoghurt – TPP vs JAEPA
JAEPA TPP-11
Key Questions Do my products face tariffs in TPP-11 export markets? Which FTA provides the best access? Can I use the TPP-11 to export to multiple markets?
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WHERE TO NEXT FOR TPP-11?
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Agreement signed 8 March 2018 Text tabled in Parliament 26 March 2018 JSCOT inquiry. Submissions due 20 April 2018 TPP-11 enters into force 60 days after 6 members have ratified the agreement
60 DAYS
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Passage of necessary legislative amendments
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22 May – Canada tabled TPP-11 text in its Parliament 25 June – NZ introduced TPP-11 Amendment Bill into Parliament 28 June – Mexico became the first country to ratify 6 July – Japan ratified the TPP-11
WHAT ABOUT OTHER COUNTRIES?
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TRANS-PACIFIC PARTNERSHIP (TPP-11)
COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR
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