Highlights
- Australia has signed its largest trade deal, an agreement eight years in the making, involving 14 other Asia-Pacific countries.
- India was involved in negotiations for this agreement but it was separated from the final agreement.
- Aside from goods trading, the agreement also provides a common set of rules for digital trade and intellectual property.
Australian businesses, universities and healthcare providers are set to benefit from the deal, as the Federal Government attempts to improve its relations with China in the process.
Trade Minister Simon Birmingham says the Regional Comprehensive Economic Partnership (RCEP) provides a huge platform for Australia to deliver more exports and create more jobs.
Eight years in the making, the agreement is between an economic bloc representing around a third of the world's GDP.
"The RCEP agreement includes nine out of Australia's fifteen top trading nations. These are our biggest trade partners and that's why having more common rules, better access into those markets is going to be great news for our businesses, our farmers and for jobs of Australians and the economic recovery of Australians." Senator Birmingham said.
Japan, China, South Korea, New Zealand and the 10 members of the Association of Southeast Asian Nations (ASEAN) will be part of the deal with Australia.
Nine of the countries are already top trading partners with Australia, accounting for 67 per cent of exports.
Senator Birmingham says he is disappointed India will not be part of the final agreement.
The trade minister did welcome the fact that Australia and China are partners in the accord. Australia is hoping the deal will repair relations with China, after several trade disputes.
Australia will use the RCEP deal to resume in-person meetings with Chinese ministers, which have been suspended due to the disputes.
Aside from goods trading, the agreement also provides a common set of rules for digital trade and intellectual property.
It will also provide better market access for Australia's services industries - such as financial services, health care and education. Business groups say the trade agreement is critical for Australia's recovery from the COVID-19 recession.
Why did India not sign the trade deal?
India withdrew last year over concerns about cheap Chinese goods entering the country, though it can join at a later date if it chooses.
It raised alarm about market access issues, fearing its domestic producers could be hard hit if the country was flooded with cheap Chinese goods.
Textiles, dairy, and agriculture were flagged as three vulnerable industries.
Prime Minister Narendra Modi faced mounting pressures at home to take a tougher stance on the terms and proved unbending as the RCEP negotiations came to a close.
