Agricultural exports are set to benefit from the Trans Pacific Partnership free trade deal as early as next year.
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The enabling legislation passed Parliament two weeks ago, but Australia formally ratified the deal with its trade partners just before the November 1 deadline.
The TPP-11 operates across the calendar year and the 60 days processing window meant Australia had to move or miss out in 2019.
We are the sixth country to formally ratify the deal, making up the minimum requirement for the deal to kick in – joining Japan, New Zealand, Singapore and in a trade first for Australia – Canada and Mexico.
The latest version of the deal, known as TPP-11, is between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.
The nations signed an in-principle agreement in March and the deal will now come into force on December 30.
The government said in a statement the TPP-11 would be worth $15.6 billion by 2030.
There will be a significant reduction of tariffs on Australian exports.
Australia exported around $12b of agricultural goods to TPP-11 countries in 2017, which is 23pc of total farm exports.
Beef tariffs into Japan will be reduced to 9pc within 15 years, Canadian beef tariffs will go within five years and Mexican tariffs will go within 10 years.
All remaining wool tariffs go with entry into the TPP-11.
Wheat and barley into Japan will see a 45pc reduction on the mark-up within five years, there is a new quota volumes will be created for wheat and barley under the simultaneous buy-sell mechanism, and there’s a new quota access for malt exports.
There is an immediate elimination of all Canadian tariffs on cereals and grains.
National Farmers’ Federation president Fiona Simson welcomed the timing of the deal to kick-in this year.
"TPP-11 delivers improved market access for dairy; cotton; barley; beef and live cattle; offal, processed meat and animal fats; sheepmeat; seafood; sugar, wheat; and wine,” Ms Simson said.
"These outcomes will increase investment on-farm in jobs, innovation and efficiencies that will flow through to rural and regional economies."
The TPP was originally intended to include the US, but it withdrew from negotiations in 2017.
