The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) is a free trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam, which was signed on 8 March 2018 in Santiago, Chile.
Among other things, the TPP-11 will increase the threshold value at which private foreign investments by TPP-11 countries in non-sensitive businesses are automatically reviewed by the Foreign Investment Review Board from $261 million to $1,134 million. The threshold for sales of sensitive businesses will remain at $261 million and the lower screening thresholds of $15 million and $57 million will apply to investment in agricultural land and agribusiness respectively (the same as for non-TPP-11 countries). Australian investors will also benefit from preferential investment screening thresholds in the TPP-11.
Other highlights of the TPP-11 include:
- new reductions in Japan’s tariffs on fresh, chilled and frozen beef;
- new access for dairy products into Japan, Canada and Mexico;
- new sugar access into the Japanese, Canadian and Mexican markets;
- tariff reductions, and new access for our cereals and grains exporters into Japan;
- elimination of all tariffs on sheepmeat, cotton and wool;
- elimination of tariffs on seafood, horticulture and wine;
- elimination of all tariffs on industrial products (manufactured goods);
- guaranteed levels of access for services; and
- liberalised and improved regulatory regimes for investment, notably in mining/resources, telecommunications and financial services.
As a modern trade agreement, the TPP-11 will help grow digital trade with rules that cover the movement and storage of data, privacy, consumer rights, and combat spam.
TPP-11 was tabled in Parliament on 26 March 2018 for enquiry by the Treaties Committee.
Submissions are due by 20 April 2018