LAST week all eyes were on the signing of the landmark Trans-Pacific Partnership (TPP). The TPP was greeted by Queensland Farmers’ Federation’s (QFF) agriculture industry members with general nods of approval and varied enthusiasm.
The TPP trade rule agreement combines 12 countries that make up a 40 per cent of global GDP.
The TPP will eliminate over 98 per cent of tariffs in the TPP region, removing import taxes on around $9 billion of Australian trade. With a total of 40pc of all Australian agricultural exports - $14 billion already going to TPP nations the agreement has been earmarked to further grow these markets.
QFF member Cotton Australia welcomed the signing of the TPP as ‘a great boost for our industry’. With more than 99pc, $2.2 billion, of the Australian cotton crop being exported every year, international trade agreements such as the TPP are vital in consolidating and growing the industry.
There too was particular emphasis on the partnership agreement with counties like Vietnam who will no longer encounter an export tariff with the US and Japan when trading manufactured garments made of Australian cotton. This strengthens the manufacturing market in emerging economies and increases the demand for Australian cotton.
Queensland dairy farmers are another industry looking to benefit from the TPP. The increased access to international markets that have traditionally been heavily protected means more opportunity. The tangible benefit will come through the elimination of tariffs on ice-cream and yogurt into Japan and the opening of a milk market in Malaysia. Queensland Dairyfarmers’ Organisation (QDO) has welcomed the agreement.
The reaction from another QFF member, CANEGROWERS, was a little less enthused, describing the TPP agreement as a ‘bittersweet’ end to five years of complex and difficult negotiations. Whist there were significant wins with Japan eliminating tariffs and significantly reducing the levy on high polarity sugar, there remained disappointment with the USA maintaining their protectionist stance on market access for Australian sugar. – QFF President, JOANNE GRAINGER
