ANZ urges pollies to get behind TPP

ANZ has urged politicians to ratify the Trans-Pacific Partnership despite the political uncertainty about it overseas.

Westpac’s Brian Hartzer says it’s crucial to speak up for free trade. Picture: Gary Ramage

One of Australia’s most enthusiastic investors in Asia, ANZ, has urged politicians to ratify the controversial Trans-Pacific Partnership despite the political uncertainty about the proposed free trade pact overseas.

In the US, both presidential candidates have criticised the deal amid a fierce anti-trade backlash. Donald Trump has vowed to tear up or renegotiate free trade deals if he wins next week’s ­election. But ANZ has written to an influential Senate committee arguing Australia should set an example.

“ANZ notes some political uncertainty about the (Trans-Pacific Partnership Agreement) in other countries,” ANZ has told the ­foreign affairs, defence and trade committee.

“We believe that Australia should ratify the TPPA in order to demonstrate our support for the agreement and build momentum for ratification among signatories.”

In Australia, unions want the government to walk away from the TPP, arguing it will cost Australian jobs.

But big business is urging Australia to quickly implement the deal as Mr Trump and Democratic candidate Hillary Clinton position themselves against it.

Malcolm Turnbull has been pushing the US to approve the deal in the “lame duck” session after the election but before the new US president is inaugurated, although there are fears this is looking increasingly unlikely.

ANZ has told the Senate committee the deal is in the national interest.

“It will provide many opportunities for Australian businesses, particularly in the services sector, at a time when diversification is of great importance to the Australian economy,” the submission says.

“It is a substantial step forward in engagement with Asia, which has been a long-term policy ambition for successive Australian governments.”

Last month, Westpac boss Brian Hartzer said it was crucial for business people on either side of the Tasman to speak up for free trade. ANZ, too, warns that not backing the TPP risks being “left out” of new trade.

A key issue in the debate over the 12-nation TPP is the “investor state dispute settlement” mechanism, which critics warn could allow foreign corporates to override the policies of governments.

ANZ has told the parliamentary inquiry it “generally supports” the provisions within the deal, saying they give Australian businesses investing offshore “a level of assurance that they will be treated equally when operating in other TPP member states”.

“This assurance is important for Australian investors as they become more active in global markets,” the submission says.

At the weekend, the head of Utah-based Rio Tinto subsidiary Kennecott argued for the benefits of the TPP.