Trans-Pacific Partnership Agreement
Frequently Asked Questions
About TPP
1. Why do we need another Free Trade Agreement (FTA)?
Our existing FTAs have brought more money into our economy and have helped to
create jobs by increasing Australia’s trade and investment flows. As a region-wide
free trade agreement, the proposed Trans-Pacific Partnership (TPP) Agreement has a
potential to deliver even more than any of our existing bilateral FTAs. It will promote
trade liberalisation throughout the region and advance the Asia-Pacific Economic
Cooperation (APEC) vision of an economically integrated Asia-Pacific community.
Over 70 per cent of Australia’s total trade in 2011 was in the Asia-Pacific region, and
our trade with TPP countries accounted for over 20 per cent of our total trade. At the
moment, the TPP encompasses eleven Asia-Pacific countries, which together
represent a trading area of 658 million people and GDP worth nearly USD $21
trillion. These are: Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand,
Peru, Singapore, the United States and Vietnam.
The TPP can boost Australia’s trade with TPP members by improving access and
opening up new markets for Australian producers and businesses, including small and
medium-sized enterprises. It will cover more items than any of our existing FTAs.
The TPP also provides a framework for discussing changes in the business
environment and emerging trade issues including financial services, investment and e-
commerce, and for engaging with countries with which we do not have an existing
FTA, like Canada, Mexico and Peru.
On transparency
2. Why is the TPP negotiation held in secret, and why isn’t the Government releasing
the negotiating texts?
The countries in the TPP negotiations have agreed to keep the negotiating documents
confidential. This is normal practice in international trade negotiations. In the case of
the TPP, this confidentiality safeguards our negotiating positions and strategies,
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which cover sensitive national interests in relation to market access and Australia’s
trade and commerce more broadly.
Even if it were possible to release negotiating texts, these texts would be potentially
misleading. Countries often put ambitious claims in the negotiating text, pitching for a
better result than they actually anticipate. The language, and the parties’ obligations,
evolve as negotiation rounds progress. Initial claims are scaled back gradually over
the course of many negotiating rounds until all parties reach their final positions,
delivering text that all parties can agree to. The difference between early works-in-
progress texts and the final text can be vast. The text has no status until all parties
have agreed to it.
The Government holds regular public consultations and individual stakeholder
meetings to seek input from the community, and to provide updates on TPP
negotiations. TPP negotiators also hold meetings with stakeholders and interested
members of the public during negotiating rounds, to talk about progress in the
negotiations. The Department of Foreign Affairs and Trade (DFAT) posts progress
reports on the DFAT website at the end of each negotiating round.
The TPP agreement must go through the same democratic processes as other treaties
that the Australian Government considers. Once the parties agree on the final text of
the TPP agreement, the Government will make the agreement available publicly and
open to scrutiny before the Parliament considers passing it into law. After Ministers
table the final TPP text in the Parliament, the Parliament’s Joint Standing Committee
on Treaties will coordinate a public review of the agreement. The Committee can then
invite submissions and evidence at public hearings, to help determine whether it
should recommend to Parliament that the TPP be ratified. More information on the
treaty making process can be found on the DFAT website
(http://www.dfat.gov.au/treaties/making/index.html).
3. Why isn’t the Government consulting more widely with stakeholders?
The Government consults regularly with stakeholders. The Department of Foreign
Affairs and Trade (DFAT) holds stakeholder meetings that we advertise on the DFAT
website in advance (http://www.dfat.gov.au/fta/tpp/ ). Most consultations with
stakeholders are on an individual basis and are ongoing. TPP negotiators also hold
meetings with stakeholders and interested members of the public during negotiating
rounds, to talk about progress in the negotiations.
The Government’s objective in the TPP negotiations is to deliver an outcome which is
good for Australians. Hearing from the community is very useful to the Government
in developing our negotiating positions. Any stakeholder who would like to be
involved should contact the Office of Trade Negotiations in DFAT, and/or send a
submission outlining their TPP-related concerns to xxx@xxxx.xxx.xx.
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S33(a)(iii), S33(b)
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S33(a)(iii), S33(b)
On Investor-State Dispute Settlement provisions
13.14.
How will the Government treat “Investor-State Dispute Settlement” provisions
in the TPP?
The Government will not negotiate Investor-State Dispute Settlement (ISDS)
provisions in the context of the TPP. ISDS provisions are designed to give investors a
right to initiate dispute settlement proceedings against foreign governments before an
international panel.
The Government will not support any new provisions in free trade agreements that
would give greater legal rights to foreign businesses than those available to domestic
businesses. Australian negotiators have made clear that any ISDS provisions agreed
by other parties in the TPP agreement will not apply to Australia or Australian
investors.
The continued strong growth of inward investment into Australia, including primarily
from countries that do not have ISDS commitments with Australia, provides evidence
of foreign investors’ confidence in Australia’s stable investment environment and
domestic legal system. This means that Australia does not need ISDS provisions to
remain an attractive place for others to invest.
Australian businesses investing overseas, will be able to pursue TPP investment
obligations through diplomatic representations or a state-to-state dispute settlement
framework.
On labour and environment protection
14.15.
What is the Government’s position on labour and environment clauses in the
TPP?
Australia supports the inclusion of labour and environment provisions in the TPP. We
want to look at how trade can help address environmental challenges, such as
liberalising trade in environmental goods and services. We are committed to an
outcome that reaffirms the International Labor Organisation's core labour standards.
However, these provisions should not be disguised barriers to trade. The Government
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also believes that such provisions should not constrain the Commonwealth’s
regulation of social, environmental and other matters in the public interest.
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