Preparing to export

What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam introduced in 2018.

Here’s some more information on how the CPTPP works and how it could benefit your business.

How does the CPTTP work?

The CPTPP is a trade agreement designed to allow substantial market access for participating countries and eliminate more than 98% of tariffs across the free trade area. It doesn’t replace individual FTAs between countries but rather extends on them.

The 11 participating countries have agreed other countries may join if they are able to meet the standards of the CPTPP. This leaves open the possibility that current non-participating countries such as the United Kingdom and the United States may join in future.

As it stands, the CPTPP delivers major new opportunities for Australian exporters, investors and firms engaged in business with Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore and Vietnam.

Benefits for Australian exporters

The Department of Foreign Affairs and Trade (DFAT) outlines several benefits of the CPTPP for Australian exporters:

reductions in Japan's tariffs on beef
new access for dairy products into Japan, Canada and Mexico, including the elimination of a range of cheese tariffs into Japan
new sugar access into the Japanese, Canadian and Mexican markets
tariff reductions and new access for our cereals and grains exporters into Japan
elimination of all tariffs on sheepmeat, cotton and wool
elimination of tariffs on seafood, horticulture and wine
elimination of all tariffs on industrial products (manufactured goods).

Benefits for Australian exporters of services

DFAT also outlines a number of benefits for service providers engaging in international business. This includes more transparency, predictability, and in some cases, preferential arrangements for businesses in sectors such as:

architectural, engineering and surveying services
mining equipment services
financial services
universities and vocational education providers
private health and allied services
telecommunications.

Additionally, the CPTPP Agreement provides opportunities for Australian businesses to bid for overseas government contracts, including:

accounting, auditing and taxation services in Brunei Darussalam, Canada, Malaysia, Mexico and Vietnam
management consulting services in Brunei Darussalam, Malaysia and Mexico
computer and related services in all Parties, along with maintenance of office machinery in Brunei Darussalam, Canada, Malaysia, Mexico and Vietnam
architectural engineering and other technical services in Brunei Darussalam, Canada, Malaysia and Mexico
telecommunication and related services in Brunei Darussalam, Canada and Malaysia
environmental protection services in Brunei Darussalam, Canada, Malaysia, Mexico and Vietnam
education services in Brunei Darussalam, Canada, Japan, Malaysia and Mexico; and
health and social services in Brunei Darussalam and Malaysia.

So if you plan to sell goods or services overseas, the CPTPP agreement could spell an opportunity for reduced or eliminated tariffs and broader market access in participating countries.

Are you preparing to export?

Whether you are an experienced exporter or exploring export opportunities for the first time, it's critical to understand what is required and to stay up to date. Our friendly team can guide you through the process of obtaining the right export documents you require to ensure smooth customs clearance and facilitate duty exemptions.

Find out more