Consistent with its objectives regarding other sectors, the TPP aims to create open and efficient markets for trade in agricultural goods.
The TPP aims to do so by reducing barriers to entry such as tariffs, quotas and harmonising otherwise inconsistent regulatory regimes. As a consequence, the TPP will promote trade growth for all TPP parties by enabling domestic industries to connect with innovative global value chains, and facilitate the connection of supply chains and partnerships across international borders.
In addition to open access and increased connectivity, the TPP also aims to lower the costs of trade by streamlining customs procedures, encouraging co-operation on technical regulations and providing a framework for simplifying product rules. For example, parties are encouraged to cooperate and seek to adopt consistent approaches to maintaining standards, technical regulations, or conformity assessment procedures relating to the production, processing, or labelling of products as ‘organic’.
The specific practicalities of the TPP vary between parties. However, they generally reflect the objectives noted above. As an example, in 2014 around 33 per cent (approximately $15bn) of Australia's exportation of agricultural goods was to countries which are now party to the TPP. The majority of agricultural goods will be impacted by the TPP with notable implications for Australian producers of dairy, beef, sugar and grains.
It is envisaged that the TPP will:
- eliminate tariffs on more than $4.3 billion of Australia's exports of agricultural goods; and
- afford preferential access through new quotas and tariff reductions to another $2.1 billion worth of agricultural goods.
On recent estimates, the TPP could add an extra $3.67 billion to Australia’s agricultural exports within a decade.
The contents of this publication, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2020