The Federal Chamber of Automotive Industries has given the thumbs-up to Australia’s signing of the Trans-Pacific Partnership.
The TPP will come into effect on December 1, removing 98% of taxes and tariffs for imported goods from the 11 signatory nations.
Australia is the sixth country to ratify the TPP, which includes 13% of the global economy, including Brunei, Chile, Japan, Malaysia, New Zealand and Vietnam.
FCAI chief executive Tony Weber says the Morrison government deserves praise for landing the agreement which will benefit the automotive industry.
“In addition to lowering the cost of imports for Australian consumers, the agreement also enhances opportunities for Australian technology to supply chains across the growing Asia-Pacific region,” Weber says.
“The TPP-11 is the latest piece in the trade agreement jigsaw puzzle, which will lower prices for the latest automotive technologies for Australian consumers.”
The agreement was signed just a day before the final deadline, which federal trade minister Simon Birmingham says should see a net $15.6 billion benefit forecast for Australia by 2030.
“Australian farmers and businesses will particularly benefit from new high-quality free trade agreements with Canada and Mexico, our first ever with these two of the world’s top 20 economies,” Birmingham says.
Weber says the TPP is a signpost for open markets and would like to see the Morrison government go one step further.
“The 5% tariff and the Luxury Car Tax are simply taxes on technologies that can deliver better safety and environmental outcomes for Australian consumers,” he explains.
“Removing these taxes will improve economic, social and environmental outcomes, not only for motorists, but for all Australians.”
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