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Seminar on the Comprehensive and Progressive Partnership for Trans-Pacific Partnership held at the Australian Embassy, Tokyo

20 Dec 2018 2:00 PM | Anonymous member (Administrator)

On 17 December, the Australian Embassy together with JETRO and ANZCCJ held a seminar on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership at the Embassy. The Australian Ambassador to Japan, HE Richard Court and the Secretary of the Australian Department of Foreign Affairs and Trade (DFAT), Frances Adamson kicked off the session, before passing the mic over to First Secretary, Emily Flahive (a prior CPTPP negotiator) to provide an outline of the CPTPP agreement.

From left: Adam Coin, Australian Embassy Tokyo; Tadayuki Nakashima, JETRO; Cheryl Stanilewicz, Austrade and Tim Barnstable, Saputo Dairy.

This was followed by a panel discussion which included ANZCCJ Food and Agriculture Committee Chair, Tim Barnstable from Saputo Dairy, along with the Chief Senior Researcher at JETRO Tadayuki Nagashima, and Australian Embassy Trade Commissioner and Counsellor (Commercial) Cheryl Stanilewicz, moderated by Australian Embassy Trade & Economic Counsellor Adam Coin. The panel discussion and question and answer time was eye opening, and we’ve summarised the top 7 key things for you to know below:

1. The CPTPP will enter into force on 30 December 2018 for 6 countries – Australia, Japan, New Zealand, Canada, Mexico and Singapore. For Vietnam, the agreement will apply from mid-January 2019. The remaining 4 countries (Brunei, Chile, Malaysia and Peru) still need to ratify the deal in their domestic legislatures. Once they do, the CPTPP will take effect for those countries within 60 days

2. The CPTPP will eventually eliminate more than 98% of tariffs between CPTPP countries.

3. Countries in the CPTPP zone account for 23.9% of Australia’s total good exports, 22.5% of Australia’s service exports and 15.6% of the total stock of Australian foreign investment.

4. Unlike JAEPA, the CPTPP allows producers to self-produce a certificate of origin for export making it a lot easier for exporters

5. Some specific highlights for the Japan market include:

  • Reductions in Japanese tariffs on Australian beef to 9% within 15 years (currently 18% under JAEPA).
  • Horticulture tariff reductions in areas like table grapes, where CPTPP will bring the tariffs down to 0%.
  • Elimination of the 29.8% tariff on most bulk cheese over 15 years.
  • Tariff reductions and new access for cereal and grains exporters into Japan.
  • Cotton will come into Japan without tariffs, and with Viet Nam as a CPTPP party, third-country manufacturing possibilities open up.
  • Honey into Japan will have its tariff of 25.5% removed over eight years with no quotas 
  • Greater dairy access with quotas established for butter, skim milk powder, condensed milk, among others. 
  • Frozen yogurt, which currently has a duty of 26.3%, has been reduced to 13.15% over ten years, with quota volume restrictions under JAEPA, but under CPTPP the tariff will move to 0% in ten years with no restrictions on volume.
  • Tariffs will be eliminated on bottle wine in 2021 and on bulk wine at entry into force. The tariffs on bottle wine under the EU EPA will be eliminated at entry info force. 
6. Exporters can choose whether to use JAEPA or CPTPP, but one agreement should be chosen. To check which FTA is best for your business, DFAT have a handy online tool here: https://ftaportal.dfat.gov.au/.

With the first round of tariff cuts to take place on 30 December 2018, Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) has released information on the application processes for importing products subject to tariff rate quotas (TRQs) under the CPTPP.  Further information can be found in Japanese here: http://www.maff.go.jp/j/kokusai/boueki/tpp/06/01/02/2018kohyo.html.

For further information on the CPTPP:

  For Australian businesses, information on the CPTPP can be found here.  For enquiries, please contact: tpp@dfat.gov.au

 For New Zealand businesses, information on the CPTPP can be found here.  For enquiries, please contact: cptpp@mfat.govt.nz

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