Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade and Investment. Will the minister please advise the House of what new markets will be opened up to our exporters as a result of the Trans-Pacific Partnership Agreement?

Andrew Robb (Goldstein, Liberal Party, Minister for Trade and Investment) Share this | Link to this | Hansard source

I thank the member for her question. The member, of course, is a part of the very dynamic northern Australia. That part of Australia is going to require all sorts of new opportunities in new markets as well as drawing on the traditional, as that part of our country is opened up to its potential. The TPP, as has been said, has transformational promise for our goods, exporters, service providers and for investment into places like the Northern Territory. It will drive growth. It will drive jobs. It will drive innovation.

In 2014, one-third of all of our goods and services that were exported, worth $109 billion, went to the 12 TPP countries. One noteworthy aspect is, in fact, that three of the TPP countries—notably, Mexico, Canada and Peru—are economies with which we do not have existing bilateral trade agreements at the moment. This means that prohibitive tariffs on our exports into these economies, including the emerging Mexican economy with its population of 122 million people, will be eliminated across a range of areas. For example, tariffs on Australia's premium quality wine will be eliminated by Canada, by Mexico and by Peru; immediately, in the case of Canada. Canada is already a $170 million market for our wine but with still enormous potential. Our wine is very popular there but is discriminated against in certain ways. The TPP will provide a platform for much greater growth.

Rice tariffs into Mexico will also be eliminated, while our dairy producers have also gained new preferential access into Mexico and the highly protected Canadian market. Tariffs on our premium seafood will also be eliminated into Canada, Peru and Mexico, while tariffs on our iron ore, copper and nickel will be immediately eliminated into Peru. Tariffs on our iron ore and steel products into Canada will also be eliminated, while Mexico has afforded our $90 billion mining services sector new opportunities that will stem from the historic liberalisation of its energy sector. A range of other services will also gain access to these markets—hospitality and tourism and these massive growth areas for Australia will get access into these new markets.

So while the transformation agreement involves 12 countries, it also affords new levels of market access into countries where we did not have existing trade and investment agreements. The TPP is part of this government's plan to help diversify our economy in this critical post-mining boom period. Combined with our landmark trifecta of deals with Korea, Japan and China, it will help ensure that the future for Australia's exporters can be spectacular.