In brief - Freight and logistics providers, traders may gain
Although it is not yet law in Australia and there is some
controversy around its adoption, the benefits of the Trans-Pacific
Partnership Agreement (TPP) have been highlighted in a recent media
release by the Department of Foreign Affairs & Trade (DFAT),
including its positive impact on Australia's transport and
Standardising international trade and investment among benefits
In October 2015, negotiations on what has been described as the
biggest global trade deal in twenty years, which first commenced
more than five years ago, were successfully concluded in Atlanta
resulting in the TPP.
The TPP will establish a more seamless trade and investment
environment across 12 countries which represent around 40 per cent
of global GDP.
In 2014, one third of Australia's total goods and services
exports – worth $109 billion – went to TPP countries,
which also include Brunei Darussalam, Canada, Chile, Japan,
Malaysia, Mexico, Peru, New Zealand, Singapore, the United States
Combined with Australia's recent trade deals with Korea,
Japan and China, the TPP forms part of the Australian
government's microeconomic reform strategy to support the
diversification of the Australian economy in the post-mining boom
By setting common international trade and investment standards
between member countries, the TPP will make doing business across
the region easier, reducing red tape and business costs.
The TPP will reduce barriers to Australian goods exports,
services and investment, and eliminate 98 per cent of all tariffs
across everything from beef, dairy, wine, sugar, rice, horticulture
and seafood through to manufactured goods, resources and
More integrated logistics supply chains, trade and investment
In regard to transport services, DFAT said the following about
Transport services: Australian
freight and logistics providers stand to benefit from enhanced
commitments that support integrated logistics supply chains.
Australian providers of transport and logistics services in
Malaysia and Vietnam will gain strong trade and investment
protections for the first time. The TPP will capture future
liberalisation of investment regulations in aviation in Vietnam and
freight trucking in Malaysia and Vietnam, key markets for our
airlines and logistics providers.
Greater cooperation between customs authorities, transparent
and fair for traders
The Customs Administration and
Trade Facilitation Chapter will facilitate trade among TPP Parties
by limiting the administrative burdens of customs processes and
providing certainty for traders in their dealings with their
respective customs authorities. It is designed to encourage
cooperation between customs authorities, promote efficient customs
procedures and provide transparency and fairness to traders. The
Chapter preserves the ability for customs authorities to enforce
domestic laws and regulations.
Not everyone supports the TPP
Some persons are said to regard the TPP as a commercial
irrelevance, or at best a US geopolitical exercise in Asian
re-engagement. Some others have said that the TPP agenda is being
driven primarily by big business, big pharmaceuticals and big
Will the TPP become law in Australia?
The TPP is not yet part of the law of Australia. Each country a
party to the TPP will, in due course, have to undertake its
domestic treaty-making process. DFAT says that, for Australia, this
will involve tabling the treaty text in parliament along with a
National Interest Analysis and a review by the Joint Standing
Committee on Treaties to which all interested parties can make
It remains to be seen how matters will unfold as regards the
National Interest Analysis and the review by the Australian Joint
Standing Committee on Treaties.
Following the announcement by the International Atomic Energy Association that Iran has met its commitments under the Joint Comprehensive Plan of Action nuclear deal, Australia has suspended all nuclear-related sanctions against Iran.
PNG has domestic arbitration legislation, but does not provide for the enforcement of foreign arbitral awards.
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