Sheep and beef sector welcomes signing of CPTPP

Posted March 09, 2018

Even without the United States, the deal will span a market of almost 500 million people, making it one of the world's largest trade agreements, according to Chilean and Canadian trade statistics.

Washington's exit meant a drastic downsizing of the original agreement - which with U.S. involvement represented 40 per cent of the global economy. Without the US which was taken out of the deal by President Donald Trump, the new pact will cover just 13% of global GDP, but still include around 500 million people.

The 11 remaining nations, led by Japan and Canada, finalized a revised trade pact in January.

Australia's beef exports to Japan have increased by a cumulative $1 billion since its Free Trade Agreement (FTA) came into force, which has resulted in New Zealand losing out on approximately $53 million worth of beef exports to Japan over the same period.

Eleven Asia-Pacific nations on Thursday are to sign a slimmed-down trade pact to lower tariffs just as US President Donald Trump seeks to raise them after withdrawing from the deal a year ago.

Malaysia's Minister for Trade and Industry Datuk J. Jayasiri signs the Trans-Pacific Partnership (TPP) trade deal, in Santiago, Chile March 8, 2018.

Dozens of people protested on Wednesday in Chile where the signing of the new Trans-Pacific Partnership Agreement (TPP) will take place in the country's capital.

Heraldo Munoz, Chile's minister of foreign affairs, said he expected Chile's trade with China, its top trading partner, to continue growing alongside trade with CPTPP countries.

Most provisions of the original agreement remain, except those related to intellectual property originally inserted at the demand of United States negotiators.

"We're proud.to show the world that progressive trade is the way forward, that fair, balanced, and principled trade is the way forward, and that putting citizens first is the way forward for the world when it comes to trade", Canadian Trade Minister Francois-Phillippe Champagne said.

The CPTPP agreement leaves the door open for the United States to rejoin the club, a step Mr Trump in January hinted he would be open to if the U.S. could get a "substantially better deal".

Speaking on Morning Report earlier this week, Mr Parker said the new Pacific-wide agreement was a beacon for open markets at a time when countries were increasingly looking inwards.

The European Union said this week that it is ready to retaliate against Trump's tariffs - of 25 percent on imported steel and 10 percent on aluminum imports - with counter-measures against iconic USA products like Harley Davidson motorcycles, Levi's jeans and bourbon.

The Council of Canadians is anxious, however, that with Mercosur, the Liberal government is again rushing into another corporate agreement, without a debate on the needs and wishes of the public, Dey said.

He announced the plan for tariffs last week, rattling financial markets.

"In the absence of CPTPP, we have been losing significant market share in countries where our competitors have preferential access - particularly Australia's beef access into Japan".