Next month's signing of the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) promises big wins for the food and beverage industry, writes Andrew Hudson of Rigby Cooke Lawyers.
Last year, an agreement on the terms of the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP) was reached, and although full details have yet to be released, it will see new trade and investment opportunities, integrate economies and promote and facilitate supply chains in the region.
The CPTPP has survived two near-death experiences. First, when the US withdrew from the TPP following the Trump administration taking office, and second, when Canada stalled on agreement to the deal at the recent APEC Ministers meeting, even though the deal seemed to have been completed.
However, all reports say that a final agreement has been reached, with signing expected to take place on 8 March and, hopefully,) implementation later this year or early in 2019.
The food and beverage export industry has been seen as a real winner under our FTA agenda, and these developments merely serve to advance those gains and reflect the importance of the sector to government.
While the text of the CPTPP has yet to be released, given the terms of the TPP and details of 22 ‘suspensions’ to the TPP agreed at the APEC meeting, the highlights for the food and beverage industry appear to be as follows:
- It will improve our existing FTAs with countries who are also parties to the CPTPP
- It will constitute new trade deals for Australia with Canada and Mexico
- It will eliminate more than 98 per cent of tariffs in the trade zone
- Tariffs will be eliminated on trade in sheep, meat, cotton, wool, seafood, horticulture, wine and industrial products.
- New quotas for wheat, rice and sugar to Japan, Canada and Mexico will be granted
- New reductions in Japan’s tariffs on beef will come into effect (Australian exports were worth $2 billion in 2016-17)
- We will see new access for dairy products into Japan, Canada and Mexico, including the elimination of a range of cheese tariffs into Japan covering over $100 million of trade
- Tariff reductions and new access for cereals and grains exporters into Japan will come into effect, including, for the first time in 20 years, new access for rice products into Japan.
Details are correct at the time of submission 16 February 2018.
ABOUT THE AUTHOR
Andrew Hudson is a Partner with Rigby Cooke’s Litigation team, specialising in all areas of customs and trade including disputes with the border agencies, as well as international trade conventions, dispute resolution and arbitration, trade financing options, commodity and freight contracts.
He is also a member of the International Trade Remedies Forum convened by the Anti - Dumping Commission (ADC) and a member of the board of directors of the Export Council of Australia (ECA) and the Food and Beverage Importers Association (FBIA).
