TPP-11 to come online in 2018 | KPMG | AU
close
Share with your friends

TPP-11 to come online in 2018

TPP-11 to come online in 2018

KPMG’s Leonie Ferretter explores the benefits of the Trans Pacific Partnership and what international traders should expect from TPP-11.

1000

Partner, Trade & Customs

KPMG Australia

Contact

Also on KPMG.com

Shipping containers on a cargo ship

Australia became the sixth country to ratify the Comprehensive Progressive Agreement for the Trans-Pacific Partnership (TPP11) on 31 October 2018, joining Canada, Japan, Mexico, New Zealand and Singapore and signalling a likely commencement of the TPP-11 for 30 December 2018. Yet to ratify the Agreement are Brunei, Chile, Malaysia, Peru and Vietnam.

This significant milestone will allow two duty reduction phases for signatories to occur within 2 days. Once all countries have ratified, the TPP-11 will cover 14.4 percent of global world trade, 6.7 percent of the world’s population and a GDP of US$10.6 trillion opening a suite of benefits including tariff reductions for goods of a country of origin of TPP-11 members, services access in the education, financial, professional, transport, mining health, telecommunications and e-commerce sectors, and commitments on regulations on foreign investment.

Recognising the benefits of the TPP in the context of existing agreements

While a number of the members of the TPP-11 have bi-lateral and/or regional free trade agreements in place, the benefit of the TPP-11 is that there are only one set of rules of origin required to be assessed to access preferential duty rates when exporting to TPP-11 members. However, with this in mind, it is also imperative that exporters review the applicable phasing duty rates that will apply under the TPP-11 for each of the importing countries, as the duty benefits may not currently be as great as the benefits under other existing free trade agreements.

To read more of this article, log in or register to KPMG Tax Now.

Connect with us

 

Request for proposal

 

Submit