Delays to TPP ‘put $15.6bn benefits at risk’

Simon Birmingham has warned of $15.6bn in net annual benefits being lost if the TPP isn’t approved.

Federal Opposition Leader Bill Shorten and Victorian Premier Daniel Andrews arrive for a press conference on the rooftop of the Chen Hotel in Box Hill , Melbourne, Sunday, October 14, 2018. Bill Shorten is backing the Victorian Labor government's promise for a new suburban rail loop, pledging to tip in $300 million. (AAP Image/Penny Stephens) NO ARCHIVING

Trade and Investment Minister Simon Birmingham has warned that key Australian industry sectors including steel, wine and agriculture would be disadvantaged if the Trans-Pacific Partnership trade deal — worth an estimated $15.6 billion in net annual benefits to the national economy by 2030 — isn’t pushed through parliament.

Ahead of introducing the TPP-11 implementation bill into the Senate today, Senator Birmingham told The Australian any delays in rubber-stamping the trade pact would handicap Australian miners, beef and wool exporters.

Bill Shorten has come under pressure from Labor’s Left faction, the Construction Forestry Maritime Mining and Energy Union, Electrical Trades Union and the Australian Manufacturing Workers Union to oppose the trade deal.

The Opposition Leader last month stared down internal resistance to the deal, securing support from Labor caucus to back the trade agreement, despite a heated debate involving up to 23 speakers, including Left faction MPs who spoke against the TPP-11.

Senator Birmingham, who replaced Steve Ciobo as Trade Minister following the August leadership spill and is leading negotiations on trade pacts with the EU and Hong Kong, said “now is not the time to stall this landmark agreement”.

“We’d be doing Australian farmers and businesses a serious disservice if we don’t lock in the benefits of this trade deal, including an estimated $15.6bn in net ­annual benefits to national income by 2030,” Senator Birmingham said.

“While there are real upsides to ratifying the TPP, there are potentially even greater downsides to not ratifying quickly, as competitors would get the jump on our farmers and businesses in key markets.

“The TPP-11 offers significant advantages for Australian exporters — but these become risks if the likes of Centre Alliance and the Australian Greens stall our ­efforts.”

The government’s deputy Senate leader said “those who want to play an isolationist card by delaying, blocking or unpicking this agreement should actually listen to the Australian farming and business representatives who are urging its swift ratification”.

“There is no reason why our beef producers, our miners, our wine and wool exporters should be put at a disadvantage by having other TPP-11 countries get in first to secure better access to our ­export markets,” he said.

“In a time of increased uncertainty surrounding the trade policies of the world’s largest economies, we need to give Australian exporters every possible advantage.

“We’ve been a nation that has long advocated for greater market access and free trade,” the senator said.

“What type of message are we sending if we don’t get on with the job of ratifying the TPP-11 as soon as possible?

Senator Birmingham said opposing the TPP-11 would mean “less market access for our farmers when they need it most, less opportunities for our businesses, fewer jobs and less investment for Australia”.

Minerals Council of Australia chief executive Tania Constable said speedy passage of the TPP-11 legislation was critical to “give Australian exporters the opportunity for an early ‘double’ tariff cut under the Asia-Pacific trade deal”.

The Export Council of Australia and farming lobby Grain­Growers have also called for a bipartisan commitment to deliver a message to global partners that Australia was pushing back against protectionism.

Analysis obtained by The Australian reveals “industries would be at an immediate disadvantage” if Australia failed to ratify the TPP-11.

The TPP-11 is due to enter into force 60 days after six countries ratify the agreement, with Japan, Singapore and Mexico already rubber-stamping the deal, and New Zealand and Canada close to completing their ratification processes.

New Zealand and Canada would reap advantages over Australia with tariff cuts for their fresh beef exports to Japan, and the New Zealand wine industry would gain an edge over Australia in the growing Canadian market. New Zealand and Canada would also benefit from lower tariff rates on cheddar cheese exports.

Australian exports of iron and steel to Vietnam, currently worth $146 million, could also be at a significant disadvantage to Japanese steel competitors if there are ­delays in ratifying the TPP-11.

The TPP-11 would also link Australia with some of the world’s major automotive producers including Japan, Mexico and Canada.