I’ve heard some chatter about an international free-trade agreement which has been recently signed. How will this affect Aussie farms and exporters?
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This month, Australia and New Zealand, along with nine other Asia-Pacific nations signed one of the largest and most progressive free trade agreements in history. The agreement opens up new trade opportunities for Aussie exporters and businesses, covering a market of 495 million people, or 6.8 per cent of world population.
The lengthily named Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) will increase market access and eliminate more than 98pc of tariffs across the 11 participating countries.
In essence the agreement reduces costs for Australian exporters doing business with member countries by streamlining bureaucracy and reducing or eliminating tariffs levied on products and services when they cross the border.
‘So what’s in in it for me?’ I’d say: ‘a lot’. Aussie and Kiwi businesses have enjoyed the benefits of FTA’s with many countries for years, including with each others’ markets, and several co-signatories to the CPTPP such as Singapore, Chile, Vietnam, Malaysia and Japan. Importantly, the new agreement improves the conditions of access for exporters over some previous FTA’s, and includes access to new markets with which neither Australia nor New Zealand have previously had an FTA, notably Canada and Mexico.
The agreement covers a wide-range of areas, including trade in goods, such as manufactured products and agricultural exports. The ‘progressive’ part of the title refers to environmental, labour, anti-corruption and transparency measures, with special attention being paid to the needs of small and medium-sized enterprises (SMEs).
If you are thinking about exporting or are already trading internationally, you may wish to consider our new Export Strategy service to ensure your business is prepared for the future, and take advantage of all the opportunities and markets available. We offer a suite of export related assistance including Australian Trusted Trader registration, Export Grant applications, Supply Chain Optimisation, Due Diligence and Customs Duty refunds for importers, just to name a few. For more information, please contact your local Crowe Horwath adviser.