Enjoy a 15% discount on all purchases until the 31st of March 2023 using the promo code EOFWEB22 at check out!

Economy Our insights on the global economy, business environment and the world’s major cities inform business strategy and pinpoint opportunities and risks.

Australasia and the Trans-Pacific Partnership

Euromonitor International Profile Picture
Euromonitor International Bio

After more than nine years, the Trans-Pacific Partnership (TPP) was signed in Atlanta, USA on 5th October 2015. Announced in Australasia during the early hours of Tuesday 6th October, the multilateral trade deal was signed by 12 Pacific-rim countries, including Australia, New Zealand, USA, Japan, Brunei, Canada, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.

The Trans-Pacific Partnership (TPP) creates the world’s largest free trade area, involving countries that account for 36.1% of the world’s GDP in 2014. Also, while bilateral trade agreements have monopolised the world stage of late, this is one of the first multilateral trade deals in decades. From an Australasian perspective, the TPP involves major Pacific trade partners for both Australia and New Zealand. In fact, for New Zealand alone, exports to TPP countries accounted for 39% of all exports in 2014. Similarly, exports to TPP partners accounted for 32% of all exports from Australia in 2014. Probably the most attractive feature, the TPP grants Australia and New Zealand preferential access to the US economy – a dream that successive Australasian governments have long chased. For New Zealand, this is in addition to preferential access to the economies of Canada and Japan.

The TPP includes several policies that seek to liberalise trade between its signatories, including reducing tariffs. Nonetheless, the agreement also addresses non-tariff barriers that will result in promoting investment and the trade in services between the 12 countries. However, the multilateral trade agreement may not be solely economic in nature and may also possess political objectives. When announcing the signing of the TPP, US President Barack Obama stated that “when more than 95 percent of our potential customers live outside our borders, we can’t let countries like China write the rules of the global economy. We should write those rules, opening new markets to American products.” Indeed, some commentators have contended that the US aims to use the TPP to offset China’s rising global economic and diplomatic influence, a major facet of the Obama administration’s pivot to Asia strategy.

To learn more, download Euromonitor international’s white paper: “An Introduction to Regional FTAs in Australasian Markets: Business Perspectives from India and China”.

Interested in more insights? Subscribe to our content

Explore More

Shop Our Reports

Occasion Innovation in Snacks: Routine Concepts

As consumers consider and preplan their snack purchases more in lieu of economic challenges, anchoring innovations around consumer routines and need states has…

View Report

Global Industrial Trends

This report provides a global overview of industrial trends from 2022 through to 2027 for the key manufacturing and service sector industries. Insights analyse…

View Report

Global Inflation Tracker: Q1 2023

This report examines inflation levels and drivers globally and in key countries. In 2023, global inflation is expected to ease from its peak in 2022, but…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More