Less red tape for Australian exporters if TPP is delivered
30 June 2015
AUSTRALIAN exporters in the education, legal, financial, agricultural, and electronic commerce industries could be big winners if the elusive Trans-Pacific Partnership (TPP) gets the green light, according to leading audit, tax and advisory firm BDO.
Negotiations for the landmark agreement are entering the final stages and would see a deal struck between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam, to allow the enhancement of trade and investment among participating nations.
While the intensely private negotiations have made it hard to gauge what the exact benefits for those industries could be, BDO’s Executive Director of International Business Cameron MacMillan said the TPP would certainly promote transparency in trade and set new engagement rules.
“With the ink now drying on the free-trade agreement with China, both Australian business and Government are turning their attention to the TPP,” Mr MacMillan said.
“The TPP has the aim of reducing costs and red tape for Australian exporters and on balance, it holds significant opportunities for the Australian economy and export community.
“At a high level, Australia could secure notable benefits from the TPP with a region that represents more than $220 billion of two-way trade, more than $925 billion of inward investment and a region where Australia has invested more than $710 billion of its stock of outward FDI .”
“With the Federal Government facing little opposition to the deal — compared to other nations — Australian exporters have every reason to get excited as details of the agreement slowly emerge from behind closed doors.”
Mr Macmillan said the agreement complimented the already completed free-trade agreements with the United States, Japan, South Korea and China.
“At a business level, the deal is significant and goes someway to realising the dream of an Asia Pacific free-trade area and this enhanced integration will offer Australian companies access to fast growing regional supply chains,” Mr Macmillan said.