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 eliminates certain barriers to cross- border trade and investment.

WHAT DO FTAs DO FOR BUSINESS? Better access to key markets; PLUS more investment and an improved competitive attractiveness and more position for Australia competitively-priced imported business inputs = Direct benefits for Australian business

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. +

USING AN FTA Proving the Australian “origin” of your product > > > > WHAT ARE YOU HOW ARE YOUR MEETING THE CERTIFYING CLAIMING FTA EXPORTING GOODS TREATED RULES OF ORIGIN ORIGIN TARIFF PREFERENCE Determine the Use the HS (tariff) Does your product • Certify your Submit origin applicable HS code to identify the meet criteria for goods with a documentation to (tariff) Code tariff rate ‘Australian origin’ Certificate/ importing customs authority • Declaration of Origin

NORTH ASIA: LEADING MARKETS FOR AUSTRALIA $282b combined 54% OF AUSTRALIA'S 38% MERCHANDISE EXPORTS OF AUSTRALIA'S 24% TOTAL TRADE OF AUSTRALIA'S SERVICES EXPORTS ABS 2016/17 trade data

EXAMPLE: ChAFTA TRADE OUTCOMES Australian exports of bottled wine to China: $746m in 2017 800 The Chinese tariff on ChAFTA 700 enters into Australian bottled wine has force 600 been cut from 14% to 2.8% , 500 400 and will be eliminated on 300 200 1 January 2019. 100 0 2015 2016 2017 8

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 opportunities 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. 9

TPP-11 COUNTRIES: LEADING MARKETS FOR AUSTRALIA In 2016-17: 23.9% $164b combined OF AUSTRALIA'S GOODS EXPORTS WENT TO TPP-11 COUNTRIES 22.3% 22.5% OF AUSTRALIA'S OF AUSTRALIA'S SERVICES EXPORTS WENT TO TPP-11 TOTAL TRADE COUNTRIES 15.6% OF THE TOTAL STOCK OF FOREIGN INVESTMENT WAS IN THE TPP-11 COUNTRIES Source: ABS 2016/17 trade data 10

TPP-11 OUTCOMES Setting high-standard rules in the region: 11

TPP-11 OUTCOMES Goods and services exports to Canada and Mexico: 12

TPP-11 OUTCOMES Goods exports to existing FTA partners: 13

TPP-11 OUTCOMES Services exports to existing FTA partners: 14

SHOULD I USE TPP-11? Example: Frozen Yoghurt – TPP vs JAEPA Key Questions 30.0% 25.0% Do my products face tariffs in TPP-11 export markets? 20.0% Tariff Rate (%) 15.0% Which FTA provides the best 10.0% access? 5.0% Can I use the TPP-11 to 0.0% export to multiple markets? JAEPA TPP-11 15

WHERE TO NEXT FOR TPP-11? Agreement signed 8 March 2018 Text tabled in Parliament 26 March 2018 JSCOT inquiry. Submissions due 20 April 2018 Passage of necessary legislative amendments + 60 TPP-11 enters into force 60 days after 6 members have ratified the DAYS agreement 16

WHAT ABOUT OTHER COUNTRIES? 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

COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (TPP-11)

FREE TRADE AGREEMENTS