Leaders of TPP member states and prospective member states on the sidelines of the APEC summit in Yokohama, Japan, 11 November 2010. Photo credit: Gobierno de Chile
TPP market snapshot (including Australia)
- GDP: US$28,136.0 billion (2012)
- GDP per capita: US$35,488 (2012)
- Population: 792.8 million (2012)
- Trade with Australia: AU$214,224 million (2012)
- TPP % of world GDP: 39.0% (2012)
- TPP % of world population: 11.3% (2012)
- TPP % of world trade: 25.8% (2012)
About the TPP negotiations The Trans-Pacific Partnership Agreement (TPP) is a viable pathway for realising the vision of a free trade area of the Asia-Pacific. This agreement will build on the Trans-Pacific Strategic Economic Partnership Agreement (P4) between Brunei Darussalam, Chile, New Zealand and Singapore, which entered into force in 2006.
The TPP includes the P4 Parties as well as Australia, Canada, Japan, Malaysia, Mexico, Peru, the USA and Vietnam.
The Australian Government will pursue a TPP outcome that eliminates or at least substantially reduces barriers to trade and investment. The TPP is more than a traditional trade agreement; it will also deal with behind-the-border impediments to trade and investment.
It is intended that the TPP be a living agreement that remains relevant to emerging issues and allows for membership expansion. While expanded membership of the TPP is desirable, those seeking membership would need to demonstrate commitment to early and comprehensive liberalisation so as to maintain the momentum that has been generated by existing TPP parties.
Australia’s decision to participate in the TPP in 2008 followed an extensive public consultation process. Overall, there was widespread interest in and support for Australia’s participation in the TPP. Input received through the consultation process is being used to inform the Government’s priorities and objectives for Australia’s ongoing work on the TPP.
Key interests and benefits
- The TPP has the potential to form a building block for Asia-Pacific regional economic integration. It is in Australia’s interests to be involved in order to shape the direction of the initiative.
- Regional rules of origin will provide new opportunities for Australian exporters to tap into global supply chains.
- The TPP could provide additional market access for goods and services into the markets of existing FTA and future TPP partners.
- Inclusion of Investment and Financial Services chapters in the TPP could provide improved opportunities for Australian financial services providers by mitigating barriers, such as foreign restrictions on capital and investment flows.
- The TPP provides a framework for engaging with countries with which we do not have an existing bilateral trade arrangement. For example, there is potential for better access for dairy products and mining services to Peru through the TPP.