Trans-Pacific Partnership: US, Australia and 10 other countries reach landmark trade pact

AUSTRALIA is among 12 countries that have reached a US-led deal that will create the world’s largest free-trade area in the Pacific.

Andrew Robb MP

TWELVE Pacific Rim countries have sealed the deal on creating the world’s largest free-trade area, delivering President Barack Obama a major policy triumph.

The deal on the Trans-Pacific Partnership, led by the United States and Japan, aims to set the rules for 21st century trade and investment and press China, not one of the 12, to shape its behaviour in commerce to the TPP standards.

Australian Trade and Investment Minister Andrew Robb said the TPP could be “transformational” and would provide commercial stability in the region, The Australian reported.

TIM @AndrewRobbMP with ministerial counterparts at a #TPP negotiating session in Atlanta pic.twitter.com/TN2MGb5E0P

— DFAT (@dfat) October 2, 2015

“This is a great moment and a great achievement,” Mr Robb said. “I am delighted to say that, what is the biggest global trade deal in 20 years, since the Uruguay Round has been concluded.”

Under the agreement, 98 per cent of tariffs on Australian exports in the region will be eliminated and access to the US market for local sugar producers will double.

Mr Robb challenged America’s push to increase data exclusivity on biologics from five to eight years. He reached a compromise that will see no increase to the costs of medicine in Australia under the Pharmaceutical Benefits Scheme.

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Federal Trade Minister Andrew Robb in his Parliament House office in Canberra.

US Trade Representative Michael Froman said: “After five years of intensive negotiations, we have come to an agreement that will create jobs, drive sustainable growth, foster inclusive development, and promote innovation across the Asia Pacific Region.”

The hard-won deal to create the world’s largest free-trade area, encompassing 40 per cent of the global economy, came after five days of round-the-clock talks in an Atlanta hotel.

Impact ... The deal will effect 40 per cent of the global economy. Picture: Supplied

Big win for U.S. workers: @POTUS just secured a trade deal that helps the middle class. http://t.co/RCNK0hj6NP #TPP pic.twitter.com/SFXtD1fKys

— The White House (@WhiteHouse) October 5, 2015

President Obama, who made the TPP a priority of his second term, said the accord reached in Georgia “reflects America’s values and gives our workers the fair shot at success they deserve.”

“When more than 95 per cent of our potential customers live outside our borders, we can’t let countries like China write the rules of the global economy,” Mr Obama said in a statement.

“We should write those rules, opening new markets to American products while setting high standards for protecting workers and preserving our environment.”

#TPP negotiations concluded- Big losers are patients in developing countries. Negative impact will be enormous. http://t.co/VvP8snPR3m

— Doctors w/o Borders (@MSF_USA) October 5, 2015

More than 18,000 taxes imposed by various countries on US products will be eliminated thanks to the partnership, he added.

However, critics argue that the TPP will hurt workers, weaken food safety and financial regulations and undermine environmental and labour standards.

Others believe intellectual property provisions will harm patients access to medicine in poor countries and see a transfer of wealth to US pharmaceutical companies and Hollywood.

Wall Street and big corporations just won a big victory. Now it's on us to stop the #TPP from becoming law. #StopTPP https://t.co/TomgDWu5CA

— Bernie Sanders (@BernieSanders) October 5, 2015

Protest ... Activists call for the rejection of the Trans-Pacific Partnership trade deal. Picture: Paul Handley/AFP

The accord involves significant market openings from Canada, the United States and Japan but also sets controversial new patent standards for cutting-edge biologic drugs and demands countries like Vietnam, Mexico and Malaysia improve labour standards.

“This agreement in my view is truly transformational,” said Canada Trade Minister Ed Fast.

“The magnitude and importance of rules for 21st century issues can’t be underscored enough ... It will shape the future for many trade agreements in this 21st century.”

Working conditions ... The TPP demands countries like Vietnam improve labour standards. Picture: Supplied

The talks went four days past deadline to resolve conflicts over Canada and Japan opening up their dairy markets to New Zealand exports, and objections from Australia, Peru and Chile to the US push for longer biologic patent protections.

The US negotiated the TPP with Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.