Australia continues with Free Trade Negotiations
2016 looms as another significant year for those in the Australian part of the international supply chain.
Industry is still monitoring ChAFTA with more clarity on the approach by the DIBP to implementation of the ChAFTA, given that there have been some recognised “teething problems”.
We now wait to see which of the proposed FTA will be actioned next.
The Trans Pacific Partnership (TPP) will see the elimination of 98 per cent of tariffs among 12 countries and was formally signed by Trade and Investment Minister Robb on 4 February 2016 in Auckland.
The TPP is the world’s most significant trade and investment agreement finalised in more than two decades, with member countries accounting for around 40 per cent of global GDP.
Trade Ministers from Australia and 11 other countries issued a joint statement welcoming the TPP as an agreement that sets a new standard for trade and investment in one of the world’s fastest growing and most dynamic regions.
We can expect some difficulties with this process.
Not only will it require approval in many of the contracting countries but our recent experience with ChAFTA gives some indication of the sort of debates and political movements which will be required to ensure that the TPP is implemented. It may well be that the TPP is not implemented until 2017 (if at all).
The other significant movement will surround the completion of negotiations on a Free Trade Agreement between Australia and India, which is believed will be signed signed by the last quarter of 2016, along with the Regional Comprehensive Economic Partnership Agreement and PACER Plus, which is also close to being completed.
20Cube will continue to update our clients as information is received.