The Transpacific Partnership (TPP) – A Brief Analysis from a U.S. and Australasia Perspective
by T.G. Peiris, PRPA Australia Representative
If the TPP is ratified by all the countries concerned, it will cover Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam. TPP nations represent 40 percent of the world’s G.D.P. The countries concerned represent major destinations for U.S. manufactured goods, agricultural products and service suppliers. The Port of Philadelphia is a major trading partner with many of these nations.
TPP countries also represent the largest goods and services export market for the U.S.A. totaling $698 billion in 2013 – 44 percent of total U.S. goods exported during the year! Additionally, TPP markets also account for 42 percent of all U.S. agricultural exports in 2013. The TPP will enable the U.S. to further develop this trade, with increased export opportunities for Pennsylvania and the broader region.
From Australia’s perspective the TPP will open new markets for Australian farmers, manufactured goods and investors. The lowering of the trade barriers in the Asia Pacific region will benefit service providers in mining equipment, finance, education, engineering and logistics. Australian dairy farmers will be able to sell increased quantities of butter and cheese to the U.S. via the Port of Philadelphia.
Australia will also be able to sell an extra 65,000 tons of sugar a year to the U.S., and the Australian red meat sector will benefit from improved market access and arrangements phasing out tariffs. The Port of Philadelphia is the #1 port in the USA for Australian meat, and could significantly grow our sugar imports.
As for New Zealand, the U.S. is already that country’s third largest trading partner with bilateral trade valued at over $11 billion annually. New Zealand exporters will benefit from tariff and quota reductions for beef, dairy, wine, and manufactured goods traded with U.S.A. Tariffs will be eliminated on 93% of New Zealand’s trade with its new trade partners when the TPP is fully phased in. The Port of Philadelphia is the #1 port in the USA for New Zealand’s exports.
The agreement will give exporters better access to a market of more than 800 million customers in 11 countries across Asia and the Pacific.
The Port of Philadelphia has service with the Australasia region via our largest steamship line customers: Hamburg Sud, Maersk, CMA-CGM, Marfret, MSC, Hapag-Lloyd, and Alianca.
T.G. Peiris has represented the Port of Philadelphia in Australia and New Zealand for over 25 years. To find out more about T.G., and how he can help you ship to Australia or New Zealand, click here.
For more on the Port of Philadelphia’s steamship line connections with Australasia, click here.
Interested in how TPP is important to the Commonwealth of Pennsylvania?: TPP Benefits: Pennsylvania: Supporting Made–in–America Exports and Jobs (PDF)