The CPTPP will eliminate more than 98% of tariffs in the TPP-11 markets, which include major markets such as Canada and Mexico, the report said.
“The CPTPP creates Australia’s first free trade agreements with Canada and Mexico, giving Australian exporters preferential access to two of the world’s top 20 economies for the first time,” the USDA said.
An analysis by the Australian government concluded that the CPTPP will eliminate tariffs on more than $2.5 billion of Australian agricultural products.
The USDA noted that the agreement provides improved market access into the Japanese market for wheat, barley and malt.
“Reduced mark-ups for wheat and barley as well as new quota arrangements will go beyond the benefits Australian exporters are already enjoying under the Japan-Australia Economic Partnership Agreement,” the USDA said. “There will also be new Australian rice access quotas into Japan with a new 6,000-tonne quota available once the agreement enters into force and increasing to 8,400 tonnes after 12 years.”
Mexico’s 67% tariffs on Australian wheat will be eliminated within 10 years and the tariff on barley, currently 115%, will be removed within five years, the USDA said.
Canadian tariffs on cereals and grains will be eliminated immediately, according to the report.