Australia announces mega trade zone

KUALA LUMPUR, Oct 6 (KUNA) -- Australian Government announced on Tuesday establishment of a giant trade zone within Asia-Pacific Partnership (TPP) for the 12 Pacific rim countries which covers 40 per cent of the global economy.
This came during a news conference by Australian Prime Minister Malcolm Turnbull in the Australian capital Canberra, who hailed a new 12-country trade deal which covers 40 per cent of the global economy describing it as a "gigantic foundation stone" for Australia.
The Trans-Pacific Partnership (TPP), clinched in the US city of Atlanta after days of marathon talks, could influence everything from the price of cheese to the cost of cancer treatments.
The 12 TPP countries make up about 40 per cent of global GDP. Last year, one third of Australia's total goods and services exports, worth USD 109 billion, were sent to TPP countries.
The TPP market access outcomes are ambitious and comprehensive, with benefits across the Australian economy.
The controversial deal involves Australia, Canada, the United States, Japan, Malaysia, Mexico, Peru, Brunei, Chile, New Zealand, Singapore and Vietnam, Australian Broadcasting Corporation (ABC) said.
ABC quoted Turnbull as saying the deal will eliminate 98 per cent of all tariffs across TPP countries, affecting products such as beef, dairy, wine, sugar, rice, horticulture, seafood, manufactured products, resources and energy.
Turnbull said he discussed the deal directly with US President Barack Obama last week and said he had spent many hours on the phone in recent days helping to seal the deal.
For his part, Trade Minister Andrew Robb said "There are winners and losers but overwhelmingly this will drive enormous job growth and create all sorts of wonderful opportunities." It is expected to face great difficulties getting through a hostile US Congress and is also looking shaky in Canada, which is facing an imminent national election.
The Australian Government also has to persuade parliament to back the agreement, Labor is seeking a briefing about the closely held detail of the deal.
The Federal Opposition said the deal had "significant potential benefits" but it wanted to examine the fine details.
"We said a red line for us was ensuring that there would be no impact on the accessibility and affordability of medicines in this country," Labor's trade spokeswoman Penny Wong said. (end) mam.ha